The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of a(n) ________.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) pure monopoly
E) government monopoly

Question

Quizplus · Accepted Answer

The presence of six large studios that dominate the industry and control 90% of the revenues indicates an oligopolistic competition, where a small number of large firms have significant market power and can influence prices and output levels.

The Movie Industry in a Country Is Controlled by Six