Answer: The car market is an example of oligopoly because it has few sellers who offer differentiated products.
Explanation:
The car market is an example of "Oligopoly", because it has few sellers who offer differentiated products.
Oligopoly is a market structure in which there are few sellers selling the homogeneous or differentiated products.
There is difficult entry of new firms and exist of existing firms.
Because it needs huge investment and heavy selling cost.
There is price rigidity too.
And in the car market , same features are applied.
They too incurs heavy selling cost to promote their products.
And they offer differentiated products.
i.e. they are different with respect to net weight, color, size etc.
Hence, The car market is an example of oligopoly because it has few sellers who offer differentiated products.