When the FTC investigated whether firms conspired to fix prices of computer memory called dynamic random-access memory (DRAM) chips, Samsung, Micron Technology, Hynix Semiconductor, and Infineon controlled more than 75 percent of the market for DRAM chips. The market for these chips is most likely:
A) monopolistic.
B) perfectly competitive.
C) monopolistically competitive.
D) oligopolistic.

Question

Quizplus · Accepted Answer

The market is likely oligopolistic because a few firms (Samsung, Micron Technology, Hynix Semiconductor, and Infineon) control a large portion of the market, which is characteristic of an oligopoly.

When the FTC Investigated Whether Firms Conspired to Fix Prices