Crude oil is primarily supplied to the world market by a few Middle Eastern countries.Such a market is an example of a(n) (i) imperfectly competitive market.
(ii) monopoly market.
(iii) oligopoly market.

Question

Crude oil is primarily supplied to the world market by a few Middle Eastern countries.Such a market is an example of a(n) (i)	imperfectly competitive market.
(ii)	monopoly market.
(iii)	oligopoly market.

Quizplus · Accepted Answer

An imperfectly competitive market is a market where the sellers have some market power but are not dominant enough to be considered a monopoly. The oil market is imperfectly competitive as a few Middle Eastern countries dominate the supply of crude oil, but there are other players involved in the market such as shale oil producers and OPEC.

On the other hand, a monopoly market is a market where there is only one supplier of a good or service. This is not the case with the crude oil market, as there are several countries involved in the production and export of crude oil.

An oligopoly market is a market where there are a few dominant firms that control the market. The crude oil market can also be considered an oligopoly market, as a few Middle Eastern countries have a significant share of the world's oil reserves and therefore are able to control the global supply and prices to some extent.

Crude Oil Is Primarily Supplied to the World Market by a Few