Question

Why is the automobile industry considered an oligopoly?

Answer 1

Heya...

Oligopoly is that form of market have small no of big firms...

And automobiles is that industry having only few branded big firms overall the world...

Such as... OD, Mahendra , Maruti etc..

Answer 2

Hi,

An oligopoly is a a scenario in which the market has only a few competitors (usually large companies) for buyers in a particular industry and where all of The competitors are equally sensitive in terms of marketing strategy specifically when it comes t pricing their products.

The automobile industry is called an oligopoly for this very reason that is stated above.

A good example of this would be the oligopoly  in the United States because only six firms (General Motors, Ford, Chrysler, Honda, Toyota, and Nissan) take up for almost 90% of the country.

I hope the above answer helped.

Thanks