Economics • Economic BasicsEasy
Which of the following terms describes a market structure characterized by a few large firms dominating the industry?
A. Monopoly
B. Perfect Competition
C. Oligopoly✓ Correct Answer
D. Monopolistic Competition
💡 Solution & Explanation
An oligopoly describes a market structure dominated by a small number of large firms that control the majority of industry output and influence market prices. Monopolies feature a single seller, whereas perfect competition involves numerous small firms selling homogeneous products. Firms in an oligopoly often exhibit strategic interdependence regarding pricing and output decisions.
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