An industry comprising four firms, each with about 25 percent of the total market for a product, is an example of
A)monopolistic competition.
B)oligopoly.
C)pure monopoly.
D)pure competition.

Question

Quizplus · Accepted Answer

An industry with a few firms, each holding a significant portion of the market share (in this case, around 25% each), is characteristic of an oligopoly. This market structure is defined by a small number of firms that have significant market power and can influence market prices and outcomes.

An Industry Comprising Four Firms, Each with About 25 Percent