Scenario-Based
General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers.Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others.Chevrolet, Cadillac, and GMC trucks are among the company's product lines.Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota.Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines.
-The industry conditions illustrated in this scenario are characterized as _____.
A)perfect competition
B)oligopoly
C)monopolistic
D)monopoly

Question

Quizplus · Accepted Answer

The scenario describes few major competitors in the market with each differentiating its product lines, indicating that it is an oligopoly where a few large firms dominate the market. Perfect competition, monopolistic and monopoly do not fit the scenario as they are characterized by different market conditions such as large number of small firms, product differentiation, and no competition respectively.

Scenario-Based General Motors Operates Several Divisions in Supplying Cars, Trucks, Vans