BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a market structure with many buyers and sellers
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a few companies that have 70% of the market share
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one seller and many buyers
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many companies selling slightly different products
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Detailed explanation-1: -A rule of thumb is that an oligopoly exists when the top five firms in the market account for more than 60% of total market sales. There is no single theory of price and output under conditions of oligopoly.
Detailed explanation-2: -A monopoly is one firm holding concentrated market power, a duopoly consists of two firms, and an oligopoly is two or more firms.
Detailed explanation-3: -An oligopoly is said to exist when at least 40% of a market is controlled by a few firms. To determine what type of market exists, economists have developed the Standard Industrial Code ( SIC ) to categorize firms according to their product or service.
Detailed explanation-4: -Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.