Which of the following industries would most likely have the characteristics of an oligopoly?
A) Clothing
B) Restaurants
C) Automobiles
D) Cameras
E) Make-up

Question

Quizplus · Accepted Answer

The automobile industry is a classic example of an oligopoly, where the market is dominated by a small number of large firms that have significant control over price and output levels. The barriers to entry, such as high capital requirements and brand recognition, are significant, which makes it difficult for new firms to enter the market and compete. Additionally, the products produced by the firms are differentiated (e.g. different brands, models, features), which allows them to maintain some control over pricing.

Which of the Following Industries Would Most Likely Have the Characteristics