Which of the following is the basic characteristic of Oligopoly ?
A) a few sellers, many buyers
B) many sellers, a few buyers
C) a few sellers, a few buyers
D) a few sellers, one buyer
Answers
An Oligopoly Market refers to a market situation where there are few sellers selling identical or different products thereby dominating the market by having control over the price of the product.
In an Oligopoly market there are few sellers and many buyers. As a result some of these firms enjoys an extensive control over the price of the product.
Oligopoly is closest to monopoly. The only difference is the number of players involved. In a monopoly market it has only one player whereas in an oligopoly there are more than two players.
A prime example of an Oligopoly market is visible in the tablet and smartphone . Apple iOS and Google Android combindly share more than 90% global market share.
Option A is correct.
Answer:
Correct answer is option (A) a few sellers, many buyers.
Explanation:
Oligopoly is a market condition where there is very less competition among the firms and they become the price setters.
Oligopoly is when there are more number of buyers, but there are only less number of firms that sell the products of same type.
Eg. Amazon.