In an oligopoly market structure, how many producers typically dominate the market?

• A. A few
• B. None
• C. One
• D. Many

Answer: (A)

Verified step by step guidance

1. Understand the definition of an oligopoly: it is a market structure characterized by a small number of firms that dominate the market.
2. Recall that in an oligopoly, these few producers have significant market power and their decisions affect each other.
3. Contrast this with other market structures: 'None' would imply no producers, 'One' corresponds to a monopoly, and 'Many' refers to perfect competition.
4. Recognize that the key feature of an oligopoly is that a few producers control the majority of the market share.
5. Therefore, the typical number of producers dominating an oligopoly market is 'a few'.