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Why is the automobile industry considered an oligopoly

Kyle Mckinney

in Social studies

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Bethany Evans on January 17, 2018

An oligopoly is a market structure in which the market is shared between a pair of firms, a few firms selling identical or differentiated products , and the industry has significant barriers to entry.The automobile industry is considered an oligopoly since there are few leading car manufacturers that are having a significant influence on the industry. All of these companies sell identical products. And the last characteristic of an oligopoly is also there: it is very difficult for a company to entry in this market because the production costs are enormous.

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