Which situation is the best example of an oligopoly?A.Several computer companies sell laptops with unique features.B.Two gas stations operate on the same busy intersection.C.One company controls every steel mill in a country.D.Two companies own every high-speed Internet provider in a country.
Question
Which situation is the best example of an oligopoly?A.Several computer companies sell laptops with unique features.B.Two gas stations operate on the same busy intersection.C.One company controls every steel mill in a country.D.Two companies own every high-speed Internet provider in a country.
Solution
The best example of an oligopoly is D. Two companies own every high-speed Internet provider in the country.
Here's why:
An oligopoly is a market structure in which a small number of firms has the large majority of market share.
Option A is not an oligopoly because several computer companies selling laptops with unique features suggests a competitive market, not one dominated by a few firms.
Option B is not an oligopoly because it only involves two gas stations at one intersection, not the entire market of gas stations.
Option C is a monopoly, not an oligopoly, because one company controls every steel mill in the country.
Option D is an oligopoly because only two companies own every high-speed Internet provider in the country, indicating that these two companies control a large portion of the market.
Similar Questions
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Which of the following examples illustrates an oligopoly market?Group of answer choicesA farmers' market with many individuals selling sweet corn and tomatoesA city whose electrical service is provided by one electric co-operativeA city with two firms that are licensed to sell school uniforms for the local schoolsA city with many independently owned hair styling salons
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Which of the following statements correctly defines an oligopoly?A.An oligopoly means the state controls most economic production.B.An oligopoly allows for extensive economic competition.C.An oligopoly is any business owned by a single person.D.An oligopoly is an economic market dominated by a few producers.Submit
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