GCEEconomicsMarket Structures2022

Which of the following is NOT a characteristic of an oligopolistic market?

AMutual interdependence among firms in pricing decisions
BSignificant barriers to entry into the industry
CFree entry and exit of firms in the long runCORRECT
DProducts may be homogeneous or differentiated
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Toaster Teacher
Why the answer is C, and why the others tempt you.
Free entry and exit of firms in the long run is a feature of perfect competition and monopolistic competition, not oligopoly. Oligopoly is characterised by significant barriers to entry that limit the number of firms to a few dominant players. The other options — mutual interdependence, barriers to entry, and the possibility of homogeneous or differentiated products — are all genuine characteristics of oligopoly.
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