Question

Which situation could be the best example of an oligopoly?

-A new producer of power tools has entered the market and is relying on low prices to attract consumers.
-A new producer of a smart phone operating system is trying to enter the market but cannot because most cell phone makers use one of two popular operating systems.
-A new producer of running shoes is trying to enter the market but cannot because of an existing patent.
-A new producer of tires has entered the market and found that demand is already being met.

Answer 1

A new producer of a smart phone operating system is trying to enter the market but cannot because most cell phone makers use one of two popular operating systems.

Answer 2

Oligopoly is a state of limited competition, in which a market is shared with a small number of producers or sellers. The most clear example of this is the second option.

In the smarphone business, the operating system market is dominated by IOS and Android and it's almost impossible for a new software provider to enter the marker and be successful at it.

Hope this helps!