An industry that has a relatively small number of firms that dominate the market is called ?
Correct answer: C. a concentrated industry
- A. a colluding industry
- B. a merged industry
- C. a concentrated industry
- D. a natural monopoly
Explanation
A concentrated industry has a small number of firms controlling a large share of the market. This describes market concentration, whereas a natural monopoly results from strong economies of scale and is usually served by one firm.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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