In the personal computer (PC) market in the first half of 2008, Hewlett-Packard maintained its worldwide No. 1 ranking at a market share of 19.1 percent. Dell's market share was 16 percent and Acer held onto third place with a 9.5 percent share, and Lenovo maintained fourth place, with a 7.9 percent share. What type of market structure would the market for PCs represent?

Question

Quizplus · Accepted Answer

The PC market represents an oligopoly since there are a small number of large firms (such as Hewlett-Packard, Dell, Acer, and Lenovo) that dominate the market with significant market share. This structure typically results in fierce competition among the dominant firms, making it difficult for new firms to enter the market.

In the Personal Computer (PC) Market in the First Half