An industry that features a few firms that produce close substitutes is called
A) pure monopoly.
B) imperfect monopoly.
C) monopolistic competition.
D) oligopoly.
E) competitive monopoly.

Question

Quizplus · Accepted Answer

An industry that features a few firms that produce close substitutes is called an oligopoly. In an oligopoly market structure, the firms have significant control over the price and output in the market, and they tend to compete on non-price factors like branding and marketing. Examples of industries with oligopoly market structures include the automotive industry and the soft drink industry.

An Industry That Features a Few Firms That Produce Close