ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The market for crude oil is an example of an oligopolistic market. The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market. When firms cooperate with one another, it is generally good for society as a whole.

Detailed explanation-2: -The global oil market is considered an oligopoly market and oil revenues are high compared to the costs of its production because the average fixed costs are higher than the average variable costs.

Detailed explanation-3: -Yes, the oil industry is an oligopoly. It is because it shares its characteristics with an oligopoly firm. Some of the characteristics of the oil are industry is-barriers to entry, products sold by firms are identical or differentiated, and there are small numbers of firms but are large in size.

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.

Detailed explanation-5: -The OPEC member nations are major suppliers of oil in the world. Thus, it is evident that there are only fewer nations that dominate the world oil market. So, it can be concluded that OPEC is an example of an oligopoly market form.