If a few firms dominate an industry the market is known as ?
Correct answer: D. Oligopoly
- A. monopolistic competition
- B. Competitively monopolistic
- C. Duopoly
- D. Oligopoly
Explanation
An oligopoly exists when a small number of firms supply most of a market, giving each firm enough influence that its decisions affect its rivals. A duopoly is the special case in which only two firms dominate.
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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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