Question

Three large firms dominate the telecommunication industry of United Canva: AD Telecom Inc., Mystic Telecom Corp., and Total Talk Inc. Instead of cutting prices competitively, these firms have resorted to non-price competition through branding and product differentiation. Which of the following industry competitive structures are these companies most likely in?

Answer 1

oligopoly

Step-by-step explanation:

An oligopoly is a type of market where the number of suppliers is very small (at least 3) and each one has a significant market share and power. The products that they supply are generally substitutes to other products offered by the few existing competitors.

This case fits perfectly under the definition of an oligopoly, since there are only 3 firms and their products are substitutes of each others.