Exploring Economics
8th Edition
ISBN: 9781544363356
Author: Robert L. Sexton
Publisher: Sage Publications
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Question
Chapter 15, Problem 1P
To determine
The market which is oligopolistic is to be determined.
Expert Solution & Answer
Answer to Problem 1P
Option C, E and F are the markets which are oligopolistic that is Airline travel, Oil and Breakfast cereals.
Explanation of Solution
In the United States, out of all the markets mentioned these three would be considered to be considered as an example of oligopolies. These are C) airline travel, E) oil, and F) breakfast cereals.
The basic characteristic of an oligopoly is that there are only few firms that control the large majority of the market. These firms each have a major share of the market as a whole and their actions influence one another.
Economics Concept Introduction
Oligopolistic:
is defined as a market where there are few companies rule over many in a particular industry or market, offering similar services and goods Because the number of players are limited in an oligopolistic market, there is a limit to the competition, it allows every firm to function effectively.
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