The aluminum and steel industry in a foreign country is dominated by just three firms and these firms control at least 80 percent of the domestic market. The market structure in this country is a (n)

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Finnegan Daniels

Business

13 June, 02:09

The aluminum and steel industry in a foreign country is dominated by just three firms and these firms control at least 80 percent of the domestic market. The market structure in this country is a (n)

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Terrance Herman · Answer 1

Oligopoly market structure

Explanation:

Oligopoly is a market structure with few firms dominating a particular market or industry. The few firms control a huge percentage of the market share. Other small firms may operate in the market, although they command a small percentage of the market share. Firms in the oligopoly market structure may sell similar or differentiated products. Other characteristics of an oligopoly market are,

Firms are engaged in extensive advertising to attract customers. There exist barriers to entry due to the high cost joining and economies of scale enjoyed by the few firms. Each firm sets its price Firms engage in business collaborations to ensure market dominance and profit maximization.