The tobacco industry in the United States is dominated by three large companies. When any one of these companies changes its price on tobacco products, the other two companies quickly adjust their prices to match it. From these characteristics, the tobacco industry could best be described as

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The fact that the tobacco industry is dominated by three large companies who quickly adjust their prices in response to each other's price changes indicates that it is an oligopoly. In an oligopoly, a small number of large firms dominate the market and have the ability to influence prices and competition within the industry.

The Tobacco Industry in the United States Is Dominated by Three