ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Perfect competition
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Monopolistic competition
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Oligopoly
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Monopoly
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Detailed explanation-1: -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-2: -The cell phones market is a good example of the monopolistic completive market because each firm is trying to differentiate their products by making their phones unique or special.
Detailed explanation-3: -The correct answer is Oligopoly. The phone operators market in India is an example of an Oligopoly. Oligopolies occur when a small number of firms collude to restrict output and/or fix prices, in order to achieve above normal market returns.
Detailed explanation-4: -Oligopolies can be followed in several industries such as steel, aluminum and automobile industries. In other words, oligopoly is defined as the market strategy that consists of several small numbers of firms. These firms or producers work explicitly to restrict output and thus control the market returns.