Economists would describe the U.S. automobile industry as
A) purely competitive.
B) an oligopoly.
C) monopolistically competitive.
D) a pure monopoly.

Question

Quizplus · Accepted Answer

The U.S. automobile industry is dominated by a few big players (Ford, General Motors, Toyota, etc.), which is characteristic of an oligopoly market structure. These firms have significant control over pricing and output, and their actions can have a large impact on the market as a whole. While there may be some competition between these firms, barriers to entry and scale economies make it difficult for new firms to enter the market and compete on a level playing field.

Economists Would Describe the U.S. Automobile Industry as