QUESTION IMAGE
Question
an oligopoly is ______.
a form of competition in which only a few sellers exist, each with a fairly large share of the market
a situation in which there are many buyers and sellers of products that are virtually identical, so no single supplier can influence the price
a situation in which one company dominates a market to the degree that it can control prices
a situation in which many sellers differentiate their products from those of competitors in at least some small way and are therefore able to charge different prices for them
To answer this, we recall the definition of an oligopoly. An oligopoly is a market structure with a few large firms (sellers) that each have a significant market share. Let's analyze each option:
- First option: Matches the oligopoly definition (few sellers, each with large market share).
- Second option: Describes perfect competition (many buyers/sellers, identical products).
- Third option: Describes a monopoly (one company dominates).
- Fourth option: Describes monopolistic competition (many sellers, product differentiation).
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A. a form of competition in which only a few sellers exist, each with a fairly large share of the market