A critical competitive feature of an oligopoly is independence of the

QUESTION

A critical competitive feature of an oligopoly is independence of the major players.

Indicate whether the statement is true or false.

ANSWER

FALSE
An oligopoly is an industry composed of a limited number of large firms. A critical competitive feature of such industries is interdependence of the major players: What one firm does can have an immediate impact on the major competitors, forcing a response in kind.