The cement market in Erbia is dominated by four firms.These firms control 85 percent of selling and buying of the domestic market.Which of the following terms explains the market structure of cement industry in Erbia?

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms control a significant portion of the market. In this case, the four dominant firms controlling 85% of the cement market indicates an oligopoly market structure. A perfect competition market structure would have many small firms with no dominant players, a monopoly market structure would have only one dominant firm, a dual monopoly would involve two dominant firms, and a monopsony would involve only one buyer in the market.

The Cement Market in Erbia Is Dominated by Four Firms