Question

signment 3 - F19 Remaining Time: 15:50:34 Indicate the market structure (monopolistic competition, oligopoly, neither or both) as suggested by the characteristic in the following statement: The majority of output is controlled by companies that already exist in the industry. (Click for List) (Click for List) neither monopolistic competition nor oligopoly both monopolistic competition and oligopoly monopolistic competition oligopoly Quit & Save Back Question Menu - Next Submit Assignment 1:09 AM d ENG 2019-12-09 acer

Answer 1

In this regard, it can actually be mentioned that if the majority of the output is controlled by existing competitors in the industry, the statement suggests that there are more than one and the control is present with the existing firms and this means the entry is restricted where market power is existing and this means the firm is an oligopoly as there are few players in the market and entry barriers are high and market power is present

Therefore (d) oligopoly is the answer to this question