When there are a handful of very large sellers, market entry is difficult, and a company can have a major impact on the product price, this is a situation known as
A) perfect competition.
B) monopoly.
C) oligopoly.
D) monopolistic competition.
E) free market enterprise.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the market. Entry into the market is difficult and the actions of one firm can have a significant impact on product prices. This describes the situation where there are a handful of very large sellers, making it difficult for new companies to enter the market and causing a major impact on product prices. Therefore, Option C, oligopoly, is the best choice.

When There Are a Handful of Very Large Sellers, Market