The markets for laundry detergents, soft drinks, and automobiles are dominated by just a few sellers. Economists would classify these markets as examples of:
A) monopolistic competition.
B) perfect competition.
C) oligopolies.
D) monopolies.

Question

Quizplus · Accepted Answer

The fact that these markets are dominated by just a few sellers indicates that they are not examples of perfect competition or monopolistic competition, where there are many small firms competing with each other. Also, with just a few dominant sellers, it is unlikely that any one of them has a complete monopoly, making D an incorrect option. These characteristics suggest an oligopoly - a market structure with a small number of interdependent firms having substantial market power.

The Markets for Laundry Detergents, Soft Drinks, and Automobiles Are