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In which type of market are firms interdependent and a few large firms dominate?

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Question

In which type of market are firms interdependent and a few large firms dominate?

Options

  • Monopsony

  • Oligopoly

  • Perfect competition

  • Duopoly

MCQ
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Solution

Oligopoly

Explanation: 

Oligopoly is a market with a few large firms whose price and output decisions affect one another, leading to interdependence.

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