Question

oligopoly
which situation could be the best example of an oligopoly?
o a new producer of power tools has entered the market and is relying on low prices to attract consumers.
o a new producer of a smart phone operating system is trying to enter the market but cannot because most cell
phone makers use one of two popular operating systems.
o a new producer of running shoes is trying to enter the market but cannot because of an existing patent.
o a new producer of tires has entered the market and found that demand is already being met.

Explanation:

An oligopoly is a market structure with few firms dominating. Here, two operating systems dominate (barrier to new entrant), fitting oligopoly traits. Other options: A shows new entrant (not oligopoly), C is patent - based barrier (monopoly - like in this case), D is about demand met (not oligopoly's key feature of few dominant firms).

Answer:

B. A new producer of a smart phone operating system is trying to enter the market but cannot because most cell phone makers use one of two popular operating systems.