The industry that most closely approximates the conditions of the oligopoly model is:
A) Restaurant.
B) Retail clothing.
C) Home construction.
D) Airlines.

Question

Quizplus · Accepted Answer

Airlines exhibit characteristics of an oligopoly market structure because a small number of major airlines dominate the market, there are high barriers to entry for new airlines, and there is significant interdependence among airlines in terms of price and output decisions. This results in limited competition and possible collusion among dominant firms.

The Industry That Most Closely Approximates the Conditions of the Oligopoly