Which of the following is an example of an oligopoly?
A)Oil producers restrict global oil supply in order to prop up the price of oil.
B)The automobile industry in the 1970s was dominated by four or five large firms.
C)Taiwan spurs exports to developed countries by subsidizing certain popular industries.
D)Mexico attempts to become self-sufficient by erecting trade barriers and developing domestic industry.

Question

Quizplus · Accepted Answer

An oligopoly is characterized by a small number of firms dominating a market. The automobile industry in the 1970s was dominated by four or five large firms, making it an example of an oligopoly. A is an example of a cartel, C is an example of government intervention in the economy, and D is an example of protectionism.

Which of the Following Is an Example of an Oligopoly