Practise classifying perfect competition, monopolistic competition, oligopoly, monopoly and natural monopoly from concentration, differentiation, entry and cost evidence.
The merger of two large firms in the Singapore market supplying taxis and private hire vehicles resulted in a single firm with 80 % of the market. The remaining 20 % of the market consisted of thousands of independent taxi drivers.
Which statement best describes what has effectively occurred in the market structure?
The market has become monopolistically competitive.
The market has changed from an oligopoly to a monopoly.
The market has changed from perfect competition to an oligopoly.
The market remains an oligopoly.
B