Why is the automobile industry considered an oligopoly

An oligopoly is a market structure in which the market is shared between a few firms, this few firms  sell identical or differentiated products , and the industry has significant barriers to entry.

The automobile industry considered an oligopoly because there are few leading auto manufacturers which are having significant influence over the industry. All these firms sell identical products. And the last characteristic of an oligopoly is also there: it is very hard for a firm to entry this market because production costs are huge.

The automobile industry considered an oligopoly because It is dominated by a few key players.

Oligopoly is a market form wherein a market or industry is dominated by a small number of large sellers (oligopolists). Because of this, the consumers choice in a oligopolistic market is limited. Oligopoly is two or more firms, whereas a monopoly is one firm, duopoly is two firms.

One of example of oligopoly is Coke and Pepsi. They have created high barriers to entry in the industry. In oligopoly, the smaller the number of firms, the more difficult for new rivals to enter the market due to the majority market share is owned by Coke and Pepsi. Therefore they are large enough to serve and control the industry.

The automotive industry is a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. The automotive industry is one of the world's largest economic sectors by revenue.

The automobile industry is considered as oligopoly because it is dominated by few key players. Therefore automobile industry consists of few major firms.

The biggest automobile industry by manufacturer  are as follows:

RankGroupCountry

1ToyotaJapan

2Volkswagen GroupGermany

3HyundaiSouth Korea

4General MotorsUnited States

Grade:  9

Subject:  social studies

Chapter: oligopoly

Keywords: oligopoly

what language is this??

Explanation: