Answer :
Final answer:
The automotive industry is a classic example of an oligopoly market structure, where a few key manufacturers hold a significant market share and make strategic decisions based on their competitors' actions. Other examples include commercial air travel and the soft drink industry.
Explanation:
In an oligopoly market structure, which is characterized by a few large firms dominating the market with substantial market power, different industries can serve as examples. A prevalent example of an oligopoly is the automotive industry. This industry has a small number of significant manufacturers, like Ford, Toyota, and Volkswagen, which possess a large share of the market. They engage in strategic decision-making that includes pricing and output, taking into account the actions of their competitors. Oligopolies come with high barriers to entry and the potential for firms to earn sustained profits.
Other examples of industries that operate as oligopolies include the commercial air travel and soft drink industries, both of which are dominated by a few major companies that exert control over price, output, and other strategic decisions. These industries experience mutual interdependence among firms, where each firm's decisions can have significant effects on the others.
