Question

Which of the following examples illustrates an oligopoly market? a. a farmers’ market with many individuals selling sweet corn and tomatoes b. a city whose electrical service is provided by one electric co-operative c. a city with two firms who are licensed to sell school uniforms for the local schools d. a city with many independently-owned hair styling salons

Answer 1

Answer:

c. a city with two firms who are licensed to sell school uniforms for the local schools

Explanation:

An oligopoly is an industry that is dominated by few large firms.

characteristics of an oligopoly are :

high barriers to entry or exit of firms

few large firms

interdependence among firms

a farmers’ market with many individuals selling sweet corn and tomatoes is an example of a monopoly

 a city whose electrical service is provided by one electric co-operative is an example of a monopoly

a city with two firms who are licensed to sell school uniforms for the local schools is an example of a duopoly which is a type of monopoly

a city with many independently-owned hair styling salons is an example of monopolistic competition