Question

Which example illustrates an oligopoly market structure in early American history?

A) Two cobblers in town control the shoe making business.
B) All imports to the Thirteen Colonies came from England.
C) Merchants offered a variety of local products for sale.
D) Artisans exchanged finished goods for produce from farmers.

Answer 1

A) Two cobblers in town control the shoe making business.

An oligopoly is an economic system where only a few businesses are in control of an industry.

In this example the business of cobbling is controlled by only two people. This system has a bit more competition than a monopoly where only one company has control but is still limiting the economic structure. These two cobblers could work together to set prices therefore still limiting the economic competition.

Answer 2

Correct answer choice is:

A) Two cobblers in town control the shoe making business.

Step-by-step explanation:

An oligopoly is a business structure in which a few companies or organizations control. When a business is distributed between a few firms, it is said to be extremely intensive. Although just a few firms control, it is probable that many small firms may also perform in the market. The auto industry is another example of an oligopoly.