During the 1990s, the U. S. cigarette industry was dominated by four major firms that charged similar prices for the cigarettes they sold under a variety of brand names. When one firm raised its prices, the other firms generally followed. The cigarette industry is best characterized as:

Question

Quizplus · Accepted Answer

The fact that four major firms dominate the industry and charge similar prices suggests that it is an oligopoly. An oligopoly is a market structure in which a few large firms dominate the market and can influence prices.