Question

Which of the following is the basic characteristic of Oligopoly?

a) a few sellers, one buyer
b) a few sellers, many buyers
c) a few sellers, a few buyers
d) many sellers, a few buyers​

Answer 1

Answer:

a) a few sellers, one buyer

b) a few sellers, many buyers✓✓

c) a few sellers, a few buyers

d) many sellers, a few buyers

Option (b)

Answer 2

Answer:

oligopsony (from Ancient Greek) is a market form in which the number of buyers is small while the number of sellers in theory could be large. This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of (often large and powerful) buyers. It contrasts with an oligopoly, where there are many buyers but few sellers. An oligopsony is a form of imperfect competition.

The terms monopoly (one seller), monopsony (one buyer), and bilateral monopoly have a similar relationship.

one few

sellers monopoly oligopoly

buyers monopsony oligopsony