Breezey Cola and High-Ten Dew are both large soft drink manufacturers that cover almost the entire market for cola. At the same time, there are 45 small firms that produce pulpy fruit juice. In the given scenario, which of the following statements is true?
a. The cola industry is likely to be a monopoly, while the pulpy juice industry is likely to be monopolistically competitive.
b. The cola industry is likely to be monopolistically competitive, while the pulpy juice industry is likely to be an oligopoly.
c. The cola industry is likely to be an oligopoly, while the pulpy juice industry is likely to be monopolistically competitive.
d. Both industries operate in an oligopolistic market structure.
c
You might also like to view...
According to this Application, the recession in 1981 was caused by
A) the government cutting back on aggregate demand to reduce inflation. B) increasing oil prices which resulted in a decrease in aggregate supply. C) massive immigration from Europe to the United States. D) an decrease in aggregate supply resulting from U.S. bank collapses.
Government decreasing taxes is an example of:
A. contractionary monetary policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. expansionary fiscal policy.