Which of the following is a defining feature of oligopolistic markets?

In an oligopolistic market, a defining feature is the dominance by a few firms, which allows these firms to have significant control over the market. This concentration of market power means that the actions of one firm, such as changing prices or launching a new product, can directly affect the strategies and decisions of the other firms in the industry.

This interdependence among the few dominant firms leads to a market structure where each firm's decisions must take into account the potential reactions of its competitors, distinguishing it from perfectly competitive markets where many firms operate independently without influencing each other. While there may be some degree of product differentiation in an oligopoly, it is not as extensive as in monopolistic competition. Additionally, the idea that every firm matches the lowest competitor's prices is more characteristic of price competition scenarios rather than a defining feature of oligopoly, where firms may engage in collusion or price-setting strategies that do not necessarily involve matching prices.