ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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monopoly
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oligopoly
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monopolistic competition
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pure / perfect competition
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Detailed explanation-1: -The automotive sector in the United States shows a unique example of oligopoly. The trinity of Ford, Chrysler, and GM has come into the limelight because of technological excellence. They have offered stiff challenges and competition to the major players worldwide.
Detailed explanation-2: -The automobile industry is considered an oligopoly because it has considerable boundaries to enter it, it relies on brand loyalty and image to make sales, and it is dominated by three major automobile companies.
Detailed explanation-3: -Examples of oligopolies can be found across major industries like oil and gas, airlines, mass media, automobiles, and telecom.
Detailed explanation-4: -Some examples of oligopolies include the car industry, petrol retail, pharmaceutical industry, coffee shop retail, and airlines. In each of these industries, a few large companies dominate.