A market structure in which only a few sellers offer a similar product is called a:

• A. oligopoly
• B. perfect competition
• C. monopolistic competition
• D. monopoly

Answer: (A)

Verified step by step guidance

1. Understand the characteristics of different market structures: perfect competition, monopolistic competition, monopoly, and oligopoly.
2. Recall that perfect competition involves many sellers offering identical products, with no single seller able to influence the market price.
3. Recognize that monopolistic competition features many sellers offering differentiated (but similar) products, with some control over prices.
4. Know that a monopoly is a market with only one seller who controls the entire supply of a unique product with no close substitutes.
5. Identify that an oligopoly is a market structure where only a few sellers offer similar or slightly differentiated products, and each seller's decisions affect the others.