Which of the following is the best example of an oligopolist

Which of the following is the best example of an oligopolistic industry?

Long distance telephone service

Wheat growers

Apple growers

Public utilities

Solution

Answer - long distance telephone service

Reason- oligopolistic competition is a type of competition where there are fewer number of sellers and large number of buyers. These seller own large market share individually, and serve a large number of buyers. Long distance telephone service is based on oligopolistic competition where there are few number of sellers who has a large market share and are in the market from generations. These companies usually have gained trust and loyalty toward customers and thus they tend to exist with a large market share on their own.

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