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Pricing and Output decisions of sellers are hig... - JAMB Economics 2021 Question


Pricing and Output decisions of sellers are highly inter-dependent in markets known as _________

A
Monopoly
B
Oligopoly
C
Monopolistic competition
D
Perfect competition
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Correct Option: B

In an oligopoly, a few large firms dominate the market. Because there are few sellers, the actions of one seller significantly impact the others. Therefore, pricing and output decisions are highly interdependent. A change in price or output by one firm will likely lead to reactions from the other firms in the market.

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