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Mazyrski [523]
3 years ago
5

Three large firms dominate the telecommunication industry of United Canava: AD Telecom Inc., Mystic Telecom Corp., and Total Tal

k Inc. Instead of cutting prices competitively, these firms have resorted to non-price competition through branding and product differentiation. Which of the following industry competitive structures are these companies most likely in?
a. monopoly
b. perfect competition
c. monopolistic competition
d. oligopoly
Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Answer:

d. oligopoly

Explanation:

An oligopoly is a market structure with very few suppliers that dominated a large market. The few firms sell a homogeneous or differentiated product. Due to their few numbers, each firm can set its price. Oligopolies are characterized by heavy advertising. The firm usually collaborates to attain maximum benefits from the markets. Other characteristics of an oligopoly.

  1. Barriers to entry: Other firms may find it hard to enter the market due to market domination by the existing firms and high start-up costs.
  2. Interdependence of firms
  3. Non- price competition
  4. A large number of consumers
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