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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Perfect Competition
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Detailed explanation-1: -Pepsi and coca-cola work in the oligopoly market structure as they are dominant firms in the market where there are other small local firms also.
Detailed explanation-2: -Coke And Pepsi Case Study This is known as an oligopoly market; where there are few large firms competing with each other in the industry. Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market).
Detailed explanation-3: -In a duopoly, two competing businesses control the majority of the market sector for a particular product or service they provide. For example, Coca-Cola and Pepsi represent a duopoly because the two firms control almost the entire market for cola beverages.
Detailed explanation-4: -Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel.