Given that there are approximately 12 companies currently selling cars in Canada,what is the car market classified as
A)perfectly competitive
B)monopolistically competitive
C)oligopolistic
D)monopoly

Question

Quizplus · Accepted Answer

An oligopoly market structure exists when a small number of large firms dominate the industry. In this case, with only 12 car companies selling cars in Canada, it indicates a market structure that is not perfectly competitive (many small firms), monopolistically competitive (many firms selling differentiated products), or a monopoly (only one firm dominating the industry). Therefore, the car market in Canada can be classified as oligopolistic.

Given That There Are Approximately 12 Companies Currently Selling Cars