Which of the following would be the best example of an oligopolistic industry?
A) agriculture
B) large aircraft manufacturing
C) the local water supply
D) retail convenience stores

Question

Quizplus · Accepted Answer

Large aircraft manufacturing is the best example of an oligopolistic industry because there are a small number of dominant firms in the market, including Boeing and Airbus, and high barriers to entry for new competitors due to the high cost of research and development and production. The industry also exhibits interdependence between the firms, meaning that their pricing and output decisions are influenced by the actions of their competitors.

Which of the Following Would Be the Best Example of an Oligopolistic