If a market has twenty competing firms and 20% of those firms produce 80% of the sales, then the market structure would be described as
A) a natural monopoly.
B) an oligopoly.
C) monopolistically competitive.
D) a monopoly.

Question

Quizplus · Accepted Answer

When a small number of firms (in this case, 20% of the firms, which would be 4 out of 20) account for a large portion of the market's sales (80%), it indicates an oligopoly. This is a market structure where a few firms dominate the market.

If a Market Has Twenty Competing Firms and 20% of Those