In an oligopolistic market, how would you best describe the extent of consumer choice?

• A. Extensive
• B. Infinite
• C. Nonexistent
• D. Limited

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the nature of an oligopolistic market, which is characterized by a few large firms dominating the market.
2. Step 2: Recognize that because there are only a few firms, the variety of products or services available to consumers is restricted compared to more competitive markets.
3. Step 3: Recall that consumer choice in such markets is not nonexistent, since there are still some options, but it is not extensive or infinite either.
4. Step 4: Conclude that the extent of consumer choice in an oligopoly is best described as limited, reflecting the restricted but present options available.
5. Step 5: Summarize that limited consumer choice arises because firms in oligopolies may offer differentiated products but do not provide the wide variety seen in perfectly competitive markets.