Magical Productions is a large production company that controls a major portion of the television industry's market share along with two other firms. Despite its competitiveness with the two other firms, it is influenced by their actions and often has to consider their strategic actions before acting on its own. In this scenario, Magical Productions is most likely functioning in a(n) ________ industry.
A) oligopolistic
B) monopolistic
C) perfectly competitive
D) monopolistically competitive

Question

Quizplus · Accepted Answer

In this scenario, Magical Productions is most likely functioning in an oligopolistic industry. An oligopolistic industry is consolidated with few (large) firms, differentiated products, high barriers to entry, and some degree of pricing power.

Magical Productions Is a Large Production Company That Controls a Major