The market which is oligopolistic is to be determined.
Answer to Problem 1P
Option C, E and F are the markets which are oligopolistic that is Airline travel, Oil and Breakfast cereals.
Explanation of Solution
In the United States, out of all the markets mentioned these three would be considered to be considered as an example of oligopolies. These are C) airline travel, E) oil, and F) breakfast cereals.
The basic characteristic of an oligopoly is that there are only few firms that control the large majority of the market. These firms each have a major share of the market as a whole and their actions influence one another.
Oligopolistic:
is defined as a market where there are few companies rule over many in a particular industry or market, offering similar services and goods Because the number of players are limited in an oligopolistic market, there is a limit to the competition, it allows every firm to function effectively.
Want to see more full solutions like this?
Chapter 15 Solutions
Exploring Microeconomics (MindTap Course List)
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning