ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which market structure is BEST represented by the soda market?
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monopoly
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pure competition
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oligopoly
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natural monopoly
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Explanation:
Detailed explanation-1: -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-2: -Oligopoly: the market where only a few companies or firms making offering a product or service. The soft drink company Coca-Cola can be seen as an oligopoly. There are two companies which control the vast majority of the market share of the soft drink industry which is Coca-Cola and Pepsi.
Detailed explanation-3: -The Pepsi Company is operating in an oligopolistic market. Monopoly and oligopoly are similar markets.
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