General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines.
-If the automobile industry included many rather than few manufacturers of differentiated their products,we might conclude that it was characterized by _____ conditions.
A)perfect competition
B)oligopoly
C)monopolistic
D)monopoly

Question

Quizplus · Accepted Answer

The scenario describes a market with many manufacturers that differentiate their products, which is characteristic of monopolistic competition.

General Motors Operates Several Divisions in Supplying Cars, Trucks, Vans