Question

Select the correct answer.

Jack, Jamie, Ronnie, and Stephan own the only computer software manufacturing companies in the country. When Jack increases the price of his product and advertises extensively to promote it, the other three manufacturers immediately increase their prices and launch promotional strategies. What type of market structure do these four companies operate in?
A.
oligopoly
B.
monopolistic competition
C.
monopoly
D.
perfect competition
E.
natural monopoly
Reset Next

Answer 1

Answer: A. Oligopoly

Step-by-step explanation:

Oligopoly is when there is a limited amount of competition since only a few people are selling the specific thing. When Jack decided to increase his product price and promote it the other three did the same not wanting Jack to be the only one benefiting.

Hope that helps a lot.

:)