Elvira College has an enrollment of 1,000 students and is located in a small Midwestern town named Johnsonville. Johnsonville ha
s a total population of 2,500 people. The nearest town is 20 miles away. Most of the residents shop locally, but they travel about once a month to the larger city and pick up the large-ticket items. Johnsonville has one fairly good-size supply store named Jameson's Grocery. The only other place in town where you might buy supplies is at the gas station/convenience store located on the edge of town. What competitive situation is Jameson's Grocery experiencing?
Since there are only two (2) sellers in the town with many buyers, the competitive situation which Jameson's Grocery is experiencing is an oligopoly.
<h3>What is an oligopoly?</h3>
An oligopoly can be defined as a market structure which comprises a small number of business firms (sellers) that are offering identical (similar) products to many buyers, wherein none of the sellers can limit the significant influence of others.
In this scenario, we can infer and logically deduce that the competitive situation which Jameson's Grocery is experiencing is an oligopoly because there are only two (2) sellers in the town with many buyers (1,000 students).
