Which of the Following Is an Example of an Oligopoly

question 12

Multiple Choice

Which of the following is an example of an oligopoly?

• A)Oil producers restrict global oil supply in order to prop up the price of oil.
• B)The automobile industry in the 1970s was dominated by four or five large firms.
• C)Taiwan spurs exports to developed countries by subsidizing certain popular industries.
• D)Mexico attempts to become self-sufficient by erecting trade barriers and developing domestic industry.

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Definitions:

Diseconomies Of Scale

The situation when a firm’s average total cost of producing a product increases in the long run as the firm increases the size of its plant (and, hence, its output).

Technologically Progressive

Characterized by innovative application of knowledge and technology to improve products, services, or processes.

Nondiscriminating

Nondiscriminating, in economic terms, often refers to pricing or marketing policies that do not vary between different consumers or groups, treating all participants equally.

Pure Monopolist

A market scenario where a single seller controls the entire supply of a product or service, with no close substitutes available to consumers.