There are two bookstores in a college town.If another bookstore opened,each of the stores would incur an economic loss.This bookstore market is
A) a natural monopoly.
B) a monopoly.
C) monopolistic competition.
D) a natural oligopoly.
E) a legal oligopoly.

Question

Quizplus · Accepted Answer

The scenario describes a natural oligopoly, where a few sellers dominate the market, and the entry of additional sellers would result in economic losses for all, indicating high barriers to entry and a market that naturally supports only a few firms due to limited demand or high costs.

There Are Two Bookstores in a College Town