Which market structure is characterized by a small number of large firms that control most of the market?

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Multiple Choice

Which market structure is characterized by a small number of large firms that control most of the market?

Explanation:
An oligopoly is a market structure where a small number of large firms dominate the market and have substantial influence over prices and overall output. Because only a few players hold most of the market share, each firm must consider the likely reactions of the others when making decisions, leading to interdependence and sometimes price leadership or tacit cooperation. This contrasts with a monopoly, where a single firm controls the market; a monopsony, where there is a single buyer; and perfect competition, which features many firms, identical products, and price-taking behavior. So the description fits an oligopoly.

An oligopoly is a market structure where a small number of large firms dominate the market and have substantial influence over prices and overall output. Because only a few players hold most of the market share, each firm must consider the likely reactions of the others when making decisions, leading to interdependence and sometimes price leadership or tacit cooperation. This contrasts with a monopoly, where a single firm controls the market; a monopsony, where there is a single buyer; and perfect competition, which features many firms, identical products, and price-taking behavior. So the description fits an oligopoly.

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