Question

Which firm would an economist most likely label as an oligopolist?

Choose one: 

A. This firm is one of many successful pest exterminators in a small city. It competes with its rivals on price and service, but all of the firms' products are essentially the same. 

B. This firm is a grocery store in a rural town. The nearest other grocery store is 30 miles away. 

C. This firm is one of a handful of cement manufacturers in a small country. There are barriers to entry due to the necessity of controlling specific resources to make cement. 

D. This firm is in retail. It is one of the largest and most popular wholesale beauty supply stores in the country. It competes with many rivals, and there is intense price competition.

Answer 1

Answer is option C.

Explanation: Many properties of an oligopolistic market are being satisfied in the third option. First that there are few firms. Then there are barriers to entry.

Please upvote this answer.