The cigarette industry consists of large firms that compete vigorously through advertising which is directed at creating fantasy and image.Economists would characterize this industry as
A)perfectly competitive.
B)monopolistically competitive.
C)an oligopoly.
D)a monopoly.

Question

Quizplus · Accepted Answer

The cigarette industry is best characterized as an oligopoly because it consists of a few large firms that dominate the market and engage in non-price competition, such as advertising to create brand image and loyalty.

The Cigarette Industry Consists of Large Firms That Compete Vigorously