An industry composed of a limited number of large firms (i.e.an industry in which four firms control 80 percent of a domestic market)is referred to as a(n):
A) syndicate
B) cartel
C) oligopoly
D) monopoly
E) stratified polity

Question

Quizplus · Accepted Answer

An industry composed of a limited number of large firms controlling a substantial portion of the market is referred to as an oligopoly. In an oligopoly, the limited number of large firms available in the industry compete against each other, and their actions have a significant impact on the market. A cartel refers to a group of firms that work together to control the market, while a monopoly refers to a single firm controlling the entire market. Syndicate and stratified polity are not terms used in the context of market structures.

An Industry Composed of a Limited Number of Large Firms