What is an oligopoly?
A. An agreement by a formal organization of producers to coordinate prices and production
B A market structure in which a few large firms dominate the market
C A market structure in which two firms have a price way
D a market structure in which a single firm dominates the market
http://www.google.com/#q=oligopoly
So b?
Right.
An oligopoly is a market structure in which a few large firms dominate the market. These firms have significant market power and can influence prices and production levels. To understand what an oligopoly is, we can look at the options provided and eliminate the incorrect ones.
Option A refers to an agreement by a formal organization of producers to coordinate prices and production. This is actually a description of a cartel, which is a specific type of collusion among firms. While collusion can occur in an oligopoly, it is not a defining characteristic of the market structure itself.
Option B correctly describes an oligopoly as a market structure in which a few large firms dominate the market. These firms have enough market power to determine the overall market conditions, such as prices and production levels.
Option C refers to a market structure in which two firms have a price war. Although price competition can occur in an oligopoly, this description is too specific and does not capture the full essence of the market structure.
Option D describes a market structure in which a single firm dominates the market, which is known as a monopoly. A monopoly is different from an oligopoly because it has only one dominant firm with no significant competition.
Therefore, the correct answer is B: A market structure in which a few large firms dominate the market.