Which of the following markets is most likely to be an oligopoly?
A)the distribution of electricity across the power grid
B)air travel between two cities on Australia's east coast
C)lunchtime take-away coffee service in Melbourne's CBD
D)pizza restaurants in Sydney's CBD, where each restaurant has its own signature pizza

Question

Quizplus · Accepted Answer

Air travel between two cities is most likely to be an oligopoly as there are usually only a few big players dominating the market and there are high barriers to entry for new competitors. In this case, there are typically only a few airlines servicing the route and it is difficult for new airlines to enter the market due to the high costs and regulations involved in the industry.

Which of the Following Markets Is Most Likely to Be