The markets for laundry detergents,soft drinks,and automobiles all are dominated by just a few sellers.Economists would classify these markets as examples of:
A)perfect competition.
B)monopolistic competition.
C)an oligopoly.
D)a monopoly.

Question

Quizplus · Accepted Answer

The fact that the markets for laundry detergents, soft drinks, and automobiles are dominated by just a few sellers indicates that there are high barriers to entry, which is a characteristic of an oligopoly market structure. In an oligopoly market structure, a few firms have significant market power, which means that they can control prices and output levels. This is different from perfect competition, where there are many small firms selling homogeneous products and no one firm has significant market power, and monopolistic competition, where there are many firms selling differentiated products but each firm has limited market power. A monopoly, on the other hand, is a market structure where there is only one seller of a particular product or service.

The Markets for Laundry Detergents,soft Drinks,and Automobiles All Are Dominated