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Terrence Mathipa
on Nov 05, 2024

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The four largest firms account for approximately 95% of U.S. cigarette sales. The U.S. cigarette industry would be best classified as a(n)

A) perfectly competitive industry.
B) monopolistically competitive industry.
C) oligopoly.
D) monopoly.

U.S. Cigarette Industry

The industry comprising companies operating within the United States that manufacture, distribute, and sell cigarettes and related products.

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition and potentially higher prices for consumers.

Perfectly Competitive

describes a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entry or exit, leading to optimal distribution and resource allocation.

  • Understand the importance of concentration ratios in determining the configuration of a market.
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Suparna ChowdhuryNov 09, 2024
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