Which of the following characteristics typically apply to oligopoly industries?

• A. There are no barriers to entry
• B. Firms have no influence over market price
• C. Products are always perfectly homogeneous
• D. A few large firms dominate the market

Answer: (D)

Verified step by step guidance

1. Understand the definition of an oligopoly: it is a market structure characterized by a small number of large firms that dominate the industry.
2. Analyze the characteristic 'There are no barriers to entry': in an oligopoly, significant barriers to entry usually exist, preventing many firms from entering the market easily.
3. Consider the statement 'Firms have no influence over market price': in an oligopoly, firms typically have some degree of market power, meaning they can influence prices to some extent.
4. Evaluate 'Products are always perfectly homogeneous': products in an oligopoly can be either homogeneous or differentiated, so this is not a defining characteristic.
5. Conclude that the key feature of an oligopoly is that a few large firms dominate the market, which aligns with the correct answer.