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| Automobiles industry is |
Oligopolistic Monopolistic Monopolistically competitive Perfectly competitive |
| Oligopolistic |
| Since there is not a single seller, it is not a monopoly. And since the prices are not same and products (automobiles) are differentiated, it rules out perfect competition. The automobile market is also characterized by product differentiation. But it is not monopolistically competitive because the large-scale economies involved in production make entry by new firms difficult. So number of firms is comparatively less as compared to monopolistic competition. |
