Chapter 9, Problem 7AA

To determine

To find: The Correct word that completes the given sentence.

Answer to Problem 7AA

The correct word that completes the given sentence is dominate.

Explanation of Solution

Oligopoly refers to the market structure in which there are few sellers and thus all of them exercise a significant influence in the market. It is a form of imperfect competition.

An important aspect in an oligopoly market is interdependence. If any of the selling firms make a slight change in their product prices, it will directly hamper their rivals and they, in return, would change their prices too to sustain the market. Government policies can have a direct or indirect impact on an oligopoly market.

So, the correct word that completes the given sentence is dominate.

Economics Concept Introduction

Introduction: Oligopoly refers to the market structure in which there are few sellers and thus all of them exercise a significant influence in the market. It is a form of imperfect competition.