Which market model is dominated by only a few firms?

• A. Monopoly
• B. Monopolistic competition
• C. Perfect competition
• D. Oligopoly

Answer: (D)

The main idea here is a market structure in which only a few firms hold the large majority of the market share. An oligopoly is defined by a small number of big firms that dominate the market, so each company must consider how the others will react to its pricing and output decisions. Barriers to entry are high, helping these firms maintain power, and competition often plays out through strategic moves, advertising, or product differentiation rather than straightforward price cuts. This differs from a monopoly (one seller), monopolistic competition (many firms with differentiated products), and perfect competition (many firms selling identical products with no single firm able to influence the price).