When near-monopolies, like Google in Internet search and Amazon in online shopping, start infringing on each other's turf, what kind of competition results?
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) legislated competition

Question

Quizplus · Accepted Answer

When near-monopolies such as Google and Amazon start infringing on each other's turf, it results in oligopolistic competition. This is because there are only a few dominant players in the market who can compete with each other, and they may recognize a mutual dependence on one another's products and services. They may also engage in various competitive tactics, such as price wars or innovation, to gain a larger market share. Pure competition and monopolistic competition are less likely to occur in this scenario, as both require a larger number of players in the market. Legislating competition may be a regulatory response to the situation, but it is not a type of competition in itself.

When Near-Monopolies, Like Google in Internet Search and Amazon in Online