Question

Which example illustrates an oligopoly market structure in early American history?

Answer 1

A) Two cobblers in town control the shoe making business.

An oligopoly is an economic system where only a few businesses are in control of an industry.

In this example the business of cobbling is controlled by only two people. This system has a bit more competition than a monopoly where only one company has control but is still limiting the economic structure. These two cobblers could work together to set prices therefore still limiting the economic competition.

Answer 2

Correct answer choice is:

A) Two cobblers in town control the shoe making business.

Explanation:

An oligopoly is a business structure in which a few companies or organizations control. When a business is distributed between a few firms, it is said to be extremely intensive. Although just a few firms control, it is probable that many small firms may also perform in the market. The auto industry is another example of an oligopoly.