There are fewer than half as many publishers of college textbooks in the United States now as a generation ago. Three companies alone account for almost two-thirds of the sale of new textbooks. This market situation characterized by very few sellers is known as
A) an oligopoly.
B) perfect competition.
C) pure monopoly.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

An oligopoly is defined as a market structure characterized by a small number of firms dominating the market. In this case, the fact that three companies account for almost two-thirds of the sale of new textbooks indicates that there are only a few sellers in the market, which is characteristic of an oligopoly. The other options, such as perfect competition, pure monopoly, and monopolistic competition, do not fit the market structure described in the question.

There Are Fewer Than Half as Many Publishers of College