Which of the following is the best example of an oligopoly situation?
A) Grocery retailers in Miami.
B) A community in the mountains with one electric power company.
C) A farmers' market with many farmers selling peaches.
D) A small airport with two airlines going to different destinations.
E) Most of the aluminum in the U.S. is sold by three producers.

Question

Quizplus · Accepted Answer

An oligopoly situation exists when a market is dominated by a small number of large firms. The example of aluminum producers reflects this characteristic as most of the aluminum in the U.S. is sold by only three producers, indicating a lack of competition, which is the hallmark of an oligopoly.

Which of the Following Is the Best Example of an Oligopoly