Which scenarios BEST describes an oligopolistic industry?

A) A single cable company serves customers in a small town.
B) Thousands of soybean farmers sell their output in a global commodities market.
C) Coca-Cola and Pepsi sell most of the soft drinks consumed around the world.
D) A college has one bookstore selling textbooks to students.

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Hiren Mistry · Accepted Answer

Final Answer : C, Explanation :  An oligopolistic industry is characterized by a few large firms dominating the market, which is exactly the case with Coca-Cola and Pepsi selling most of the soft drinks consumed around the world. The other scenarios do not fit the definition of an oligopoly. A single cable company serving customers in a small town is a monopoly, thousands of soybean farmers selling their output in a global commodities market is a perfectly competitive market, and a college having one bookstore selling textbooks to students is a monopolistic competition.

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