Which of the following is reflective of oligopolistic competition?
A)A large number of companies sell silver in a market where the price of silver is determined by demand and supply.
B)Ramsons is the sole supplier of military binoculars in the market.
C)Hundreds of firms make wristwatches, and the market is highly differentiated.
D)Pure Diamonds Inc.controls the diamond market as it is the only supplier of diamonds.
E)A price war occurs between Comfort Airlines and Air Secure, the only two airlines in the market.

Question

Quizplus · Accepted Answer

Oligopolistic competition involves a small number of large firms dominating a market. In this scenario, Comfort Airlines and Air Secure are the only two airlines in the market, indicating a limited number of firms competing. The price war also suggests that the firms are interdependent and are trying to capture a larger market share.

Which of the Following Is Reflective of Oligopolistic Competition