The characteristic that is found ONLY in an oligopoly is "One firm's actions affect another firm's profit."

Here's why:

1. "Entry into the industry is blocked" - This is not exclusive to oligopolies. It can also be seen in monopolies where a single firm dominates the market.

2. "The firm's demand curve is horizontal" - This is a characteristic of perfect competition, not oligopoly. In perfect competition, firms are price takers, meaning they must accept the market price, which is why the demand curve is horizontal.

3. "One firm's actions affect another firm's profit" - This is unique to oligopolies. In an oligopoly, there are a small number of firms that dominate the market. Therefore, the actions of one firm, such as changing the price of its product, can directly affect the profits of the other firms in the market.

4. "Producers who sell identical products" - This is not exclusive to oligopolies. It can also be seen in perfect competition where all firms sell homogeneous or identical products.

Question

The characteristic that is found ONLY in an oligopoly is "One firm's actions affect another firm's profit."

Here's why:

1. "Entry into the industry is blocked" - This is not exclusive to oligopolies. It can also be seen in monopolies where a single firm dominates the market.

2. "The firm's demand curve is horizontal" - This is a characteristic of perfect competition, not oligopoly. In perfect competition, firms are price takers, meaning they must accept the market price, which is why the demand curve is horizontal.

3. "One firm's actions affect another firm's profit" - This is unique to oligopolies. In an oligopoly, there are a small number of firms that dominate the market. Therefore, the actions of one firm, such as changing the price of its product, can directly affect the profits of the other firms in the market.

4. "Producers who sell identical products" - This is not exclusive to oligopolies. It can also be seen in perfect competition where all firms sell homogeneous or identical products.

Knowee AI · Accepted Answer

The characteristic that is found ONLY in an oligopoly is "One firm's actions affect another firm's profit."

Here's why:

1. "Entry into the industry is blocked" - This is not exclusive to oligopolies. It can also be seen in monopolies where a single firm dominates the market.

2. "The firm's demand curve is horizontal" - This is a characteristic of perfect competition, not oligopoly. In perfect competition, firms are price takers, meaning they must accept the market price, which is why the demand curve is horizontal.

3. "One firm's actions affect another firm's profit" - This is unique to oligopolies. In an oligopoly, there are a small number of firms that dominate the market. Therefore, the actions of one firm, such as changing the price of its product, can directly affect the profits of the other firms in the market.

4. "Producers who sell identical products" - This is not exclusive to oligopolies. It can also be seen in perfect competition where all firms sell homogeneous or identical products.

Which of the following is found ONLY in oligopoly?Group of answer choicesEntry into the industry is blocked.The firm's demand curve is horizontal.One firm's actions affect another firm's profit.Producers who sell identical products.

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