If there are only 10 firms in an industry, each with 10 percent of industry sales, this is an example of
A) monopolistic competition
B) unbalanced oligopoly
C) balanced oligopoly
D) perfect competition
E) insignificant firm market power

Question

Quizplus · Accepted Answer

This scenario is an example of a balanced oligopoly, where a few firms (in this case, 10) have equal, or nearly equal, shares of the market. This balance in market shares among the firms distinguishes it from an unbalanced oligopoly, where one or a few firms dominate the market.

If There Are Only 10 Firms in an Industry, Each