Monica notices that just a few big companies produce the vast majority of soft drinks.She would be correct in describing the soft drink industry as an oligopoly.
Level of Learning 3: Application of principles

Question

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An oligopoly is a market structure in which a few large firms dominate the industry. In the case of the soft drink industry, just a few big companies, such as Coca-Cola and PepsiCo, control a significant share of the market, making it an oligopoly. Monica's observation is correct.

Monica Notices That Just a Few Big Companies Produce the Vast