Which of the following is the most close to the definition of Oligopoly?

Question

Question

This question was previously asked in

Delhi Police Constable Previous Paper 1 (Held On: 5 Dec 2017 Shift 1)

Answer 1

The correct answer is option 1, i.e. The cigarette industry.
Key Points

An oligopoly is a market where industry or sales are dominated by a small group of sellers.
It can result in collusion between sellers that reduces the market competition and leads to a higher price for consumers.
Oligopoly markets share some common features and less concentrated than monopoly and more concentrated than a competition system.
The cigarette industry is an oligopoly that is dominated by a handful of players in domestic and international markets.
- As a result, competition is rare in the industry, and the incentive for innovation is also low.
Other examples of oligopoly: automobile industry, airlines, soft-drink companies, etc.