Even though in oligopoly the actions of one firm have a perceptible effect on the other firms, oligopoly firms act independently.

What would you expect the cross price elasticity of iPods and online music downloads? Explain your answer

What will be an ideal response?

An oligopoly is a market structure in which there

a. are no good substitutes produced within the industry, giving each firm substantial market share b. are perfect substitutes produced within the industries, giving each firm only partial market share c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run d. are at least 25 firms producing an identical good e. are only a few firms in the industry