ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The global oil market is considered an oligopoly market because the oil revenues are high compared to the costs of its production because the average fixed costs are higher than the average of variable costs.

Detailed explanation-2: -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.

Detailed explanation-3: -Oil and natural gas are major industries in the energy market and play an influential role in the global economy as the world’s primary fuel sources. The processes and systems involved in producing and distributing oil and gas are highly complex, capital-intensive, and require state-of-the-art technology.

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.

Detailed explanation-5: -Petrol companies have the market structure of an oligopoly.