Telecommunication industry in Canada is controlled by handful companies, therefore, the competition is:
A)Monopoly
B)Pure competition
C)Oligopoly
D)Monopolistic competition
E)Gray market

Question

Quizplus · Accepted Answer

The statement mentions that the industry is controlled by a few companies, indicating that there is a small number of dominant firms. This aligns with the definition of an oligopoly, where a few firms have significant market power and are able to influence prices and market outcomes. Therefore, C is the best choice. Monopoly (A) would mean that there is only one firm in the industry, which is not the case. Pure competition (B) would imply that there are many small firms and no one has significant market power, which also does not align with the statement. Monopolistic competition (D) would imply that there are many firms producing slightly different products, but there is no indication of this in the statement. Gray market (E) refers to the unauthorized trade of goods, which is not relevant to the question.

Telecommunication Industry in Canada Is Controlled by Handful Companies, Therefore