A market with few sellers, some influence over price, high barriers to entry, a differentiated product, and non-price competition is known as
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.

Question

Quizplus · Accepted Answer

The market described in the question has few sellers, which indicates that it is not a perfectly competitive market, where there are many buyers and sellers. The fact that the sellers have some influence over price also eliminates perfect competition. The presence of high barriers to entry and a differentiated product suggest that it is an oligopoly, where there are only a few dominant firms. Non-price competition is also a hallmark of oligopolies, as these firms tend to compete on factors such as product quality, advertising, and customer service rather than just price. Therefore, the best answer is oligopoly (C).

A Market with Few Sellers, Some Influence Over Price, High