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An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.

A. True
B. False

User Ailie
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1 Answer

1 vote

Answer:

B) False

Step-by-step explanation:

That would be a monopoly (only one supplier).

An oligopoly is a market where there are very few suppliers, and competition is very limited since the barriers to entry are very significant.

For example, the automobile industry is an oligopoly. There are only a few car manufacturers in the world, and they all are very large corporations. It costs hundreds of millions of dollars to introduce a new car model, and every time that happens, the corporations must carry on expensive advertising and promotional campaigns.

User Saeid Amini
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