Because two percent of the largest farms grow half of all of the grain in the United States,the grain industry is technically classified as an oligopoly.

Question

Quizplus · Accepted Answer

The classification of an industry as an oligopoly is based on the market structure and the level of competition, not solely on the concentration of production. An oligopoly is characterized by a few companies having significant market power, but the definition does not directly correlate to the percentage of production by farm size.

Because Two Percent of the Largest Farms Grow Half of All