Multiple choice

Under oligopoly market, equilibrium

  1. can be determined

  2. is indeterminate

  3. is indeterminate but may be resolved through several steps.

  4. assumption none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In oligopoly, firms are interdependent so equilibrium cannot be determined by simple supply-demand analysis. However, game theory and specific models like Cournot, Bertrand, or Stackelberg can help resolve equilibrium through multiple analytical steps.