Asked by marisol vasquez on May 04, 2024

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Which of the following is the best example of oligopoly?

A) Women's dress manufacturing.
B) Automobile manufacturing.
C) Restaurants.
D) Cotton farming.

Oligopoly

A market structure characterized by a small number of firms whose decisions affect and are affected by each other, leading to strategic behavior.

Automobile Manufacturing

The industry and process involved in the design, development, production, marketing, and sale of motor vehicles.

Cotton Farming

The agricultural practice of cultivating the cotton plant for its fibers, which are harvested and processed into textile products.

  • Pinpoint cases of oligopolistic market structures.
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Verified Answer

AM
Alfonso Morillo IIIMay 10, 2024
Final Answer :
B
Explanation :
Automobile manufacturing is the best example of oligopoly because there are only a few major manufacturers dominating the market, such as Ford, General Motors, and Toyota. These firms have significant control over the price and supply of automobiles, and there are significant barriers to entry for new firms. This type of market structure is characteristic of an oligopoly. The other options do not exhibit the same level of market concentration or the same barriers to entry.