In September 2008, Toyota Motor's share of the U.S. auto sales market was 15 percent, Ford's market share was 12.1 percent, GM's was 29.1 percent, Honda's was 10 percent, Nissan's share was 6.2 percent, and Chrysler's market share was 11.1 percent. What type of market structure would the market for autos represent?

Question

Quizplus · Accepted Answer

The market for autos represents an oligopoly, which is a market structure in which a few large firms dominate the market. In this case, Toyota, Ford, GM, Honda, Nissan, and Chrysler are the dominant firms in the market, with a combined market share of over 80 percent. This level of market concentration is indicative of an oligopoly.

In September 2008, Toyota Motor's Share of the U