Ralph Moore enjoys soft drinks.He prefers the Seven-Up lemon and lime beverage.He has heard rumours that the Seven-Up Company will be bought out by one of the industries two leading and market dominant competitors.Further,he has heard that if that happens,the Seven-Up brand soft drink will be eliminated since it competes with the competitor's main lemon and lime offering.What Ralph is experiencing are developments that are most likely to take place within which type of competitive environment?
A)monopoly
B)oligopoly
C)pure competition
D)monopolistic competition

Question

Quizplus · Accepted Answer

The scenario described is a characteristic of an oligopoly market structure, where a few dominant firms control the market and can influence competitive actions such as mergers and acquisitions. In a pure competition market, there are many small firms with low market power, while monopoly and monopolistic competition involve one dominant firm or many firms with differentiated products.

Ralph Moore Enjoys Soft Drinks