Between World War II and the 1970s, three firms-General Motors, Chrysler, and Ford-produced and sold nearly all the output of the U.S. auto industry. These three firms had

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An oligopoly is a market structure in which a few large firms dominate a particular industry. In this case, General Motors, Chrysler, and Ford held significant market power in the U.S. auto industry, accounting for nearly all of the output. Therefore, an oligopoly is the most appropriate choice. Monopolistic competition implies a situation where there are many firms that produce identical or similar products with variations in branding, packaging, and other non-price factors. This is not the case with the U.S. auto industry. Collusion refers to firms working together to fix prices or other market conditions to benefit themselves. There is no evidence of this occurring among the U.S. auto firms. Finally, a pure monopoly refers to a single firm that has complete control over the production and distribution of a particular product or service. This is not the case with the U.S. auto industry as there are three dominant players.

Between World War II and the 1970s, Three Firms-General Motors