An industry comprising four firms, each with about 25 percent of the total market for a product, is an example of

A) monopolistic competition.
B) oligopoly.
C) pure monopoly.
D) pure competition.

Question

An industry comprising four firms, each with about 25 percent of the total market for a product, is an example ofA) monopolistic competition.B) oligopoly.C) pure monopoly.D) pure competition.

Alexander Leonard · Accepted Answer

Final Answer : B, Explanation :  An industry with a few firms, each holding a significant portion of the market share (in this case, around 25% each), is characteristic of an oligopoly. This market structure is defined by a small number of firms that have significant market power and can influence market prices and outcomes.

An industry comprising four firms, each with about 25 percent of the total market for a product, is an example of

A) monopolistic competition.
B) oligopoly.
C) pure monopoly.
D) pure competition.

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