Which of the Following Industries Most Closely Approximates the Oligopoly

question 71

Multiple Choice

Which of the following industries most closely approximates the oligopoly model?

• A) dry cleaning
• B) fast food
• C) automobile manufacturing
• D) agricultural produce

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Definitions:

Overproduction

The condition where production exceeds the demand, leading to surplus inventory, lower prices, and potential economic inefficiencies.

Marginal Benefit

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.

Marginal Cost

The added expenditure resulting from the production of an extra unit of a good or service.

Socially Optimal

A condition or outcome that maximizes societal welfare, taking into account all costs and benefits to society as a whole.