Question

There are two producers of wagon wheels that together are the exclusive providers to a large community. the executives of these companies meet to set minimum prices and production levels, thereby ensuring that they each will make a higher profit than they would in a free market. this is an example of a(n)__________.a. dictatorship.b. autocracy.c. monopoly.d. oligopoly.

Answer 1

Letter d is correct. Oligopoly

Step-by-step explanation:

Oligopoly is an economic structure where companies come together to price products and services.

An oligopoly is characterized by a situation of imperfect competition, where few companies are responsible for controlling price supply, so competition does not occur for price variables, but for other product differentiation characteristics such as quality, value, customer loyalty and after sales service.