why is the automobile industry considered an oligopoly?\nit offers little differentiation within the…
why is the automobile industry considered an oligopoly?\nit offers little differentiation within the market.\nit has significant barriers to entry.\nit is controlled by companies that patent key technology.\nit relies on price variation to attract customers.\nit depends on brand loyalty and image to generate sales.\nit is dominated by a few key players.
Answer
Answer:
- It has significant barriers to entry.
- It is controlled by companies that patent key technology.
- It depends on brand loyalty and image to generate sales.
- It is dominated by a few key players.
Brief Explanations:
In an oligopoly, there are high entry - barriers like large capital requirements and patent - protected technology. A few firms dominate the market and rely on brand loyalty and image for sales. These characteristics apply to the automobile industry.