Oligopoly is a market structure characterized by:

A) independence in decision making.
B) interdependence: each firm's decision affects the profit of the other firms.
C) substantial diseconomies of scale.
D) a large number of small firms.

Interdependence

A situation in which the production processes or outcomes of different firms, sectors, or countries are dependent on each other.

Oligopoly

A market structure characterized by a small number of firms whose behavior is interdependent.

Decision Making

The process of choosing among alternatives to achieve a goal or solve a problem.