Assume that there are only three sellers in the aluminum industry each producing identical aluminum sheets.Given that these three firms own all the known sources of aluminum,the _____ model of the market is most applicable to the aluminum industry.
A)oligopoly
B)monopoly
C)dominant firm model
D)monopolistic competition

Question

Quizplus · Accepted Answer

An oligopoly market has a few dominant firms that control the majority of the market share. In this case, there are only three sellers who own all the sources of aluminum, indicating a high level of market concentration. Therefore, the oligopoly model is the most applicable to the aluminum industry.

Assume That There Are Only Three Sellers in the Aluminum