Question

How is oligopoly different from monopolistic competition? A. There are few sellers in an oligopolistic industry. B. There are many sellers in oligopolistic industries. C. Oligopolistic industries do not sell a differentiated product. D. There are low barriers to entry for oligopolistic industries. E. There are significant barriers to entry in an oligopolistic market.

Answer 1

Answer:

Option (A) is correct.

Explanation:

There are few large firms in a oligopoly market conditions but in a monopolistic market conditions there are many firms selling the products.

Firms in both the market conditions are selling the identical products but they are not perfect substitutes. For example; aviation industry, beer industry, etc.

There is one unique characteristic of oligopolistic is the mutual inter-dependence.