General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Cadillac, and GMC trucks are among the company’s product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines.
-The industry conditions illustrated in this scenario are best characterized as _____.
A)perfect competition
B)oligopoly
C)monopolistic
D)monopoly

Question

Quizplus · Accepted Answer

The scenario describes a market with a few major competitors (General Motors, Ford, DaimlerChrysler, Nissan, Honda, and Toyota) that sell a large portion of all products in the marketplace and differentiate their product lines. This is characteristic of an oligopoly, where a few companies have significant market share and can influence market conditions.

General Motors Operates Several Divisions in Supplying Cars, Trucks, Vans