Asked by Toshia Bolton on May 14, 2024
Verified
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 few firms controlling a large portion of the market share, often leading to limited competition.
Automobile Manufacturing
Automobile Manufacturing involves the large-scale production of cars and other vehicles, combining processes such as design, engineering, and assembly.
Women's Dress Manufacturing
The industry sector focused on the design, creation, and distribution of dresses specifically for women.
- Discern the qualities and exemplars of oligopoly, including both identical and varied oligopolies.
Verified Answer
JD
Jessica De RosasMay 18, 2024
Final Answer :
B
Explanation :
Automobile manufacturing is the best example of an oligopoly because it is an industry characterized by a small number of large firms that dominate the market, which is a key feature of oligopolistic markets. These firms have significant market power and can influence prices and production, unlike in more competitive or fragmented industries.
Learning Objectives
- Discern the qualities and exemplars of oligopoly, including both identical and varied oligopolies.