If one firm has 80 percent of industry sales, while the remaining four firms share the other 20 percent of sales, then we can conclude that this is a(n)
A) monopoly
B) price-taker market
C) low concentration ratio industry
D) balanced oligopoly
E) unbalanced oligopoly

Question

Quizplus · Accepted Answer

This scenario describes an unbalanced oligopoly, where one firm dominates the market with a significantly larger share of industry sales (80%) compared to the other firms. An oligopoly is a market structure with a small number of firms, and it is considered unbalanced when one firm has a much larger market share than the others.

If One Firm Has 80 Percent of Industry Sales, While