ECONOMICS
COMPETITION AND MARKET STRUCTURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
perfect competition
|
|
|
monopolistic competition
|
|
|
oligopoly
|
|
|
monopoly
|
Detailed explanation-1: -An oligopoly is defined as a market structure with few firms and barriers to entry. Oligopoly = A market structure with few firms and barriers to entry.
Detailed explanation-2: -The cereal industry is an oligopoly. Oligopolies are a prevalent market structure. Airlines, smartphone providers, grocery stores, movie producers, and automobile manufacturers are just a few industries that are oligopolies.
Detailed explanation-3: -Oligopoly means few sellers. In an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace. In addition, because the cost of starting a business in an oligopolistic industry is usually high, the number of firms entering it is low.
Detailed explanation-4: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
Detailed explanation-5: -According to economic theory, our breakfast cereal market is structured as a monopolistically competitive market.