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Which of the following best explains why the media industry is …

  • Question 19a of 25 - Market structures

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: Which of the following best explains why the media industry is characterized by an oligopolistic market structure?
  • Answers:
  1. Government licensing allows media companies to have a near monopoly.
  2. It is impossible for any company to compete with a local media company.
  3. Centralization of ownership has led to an industry controlled by a few large companies.
  4. There are many innovative entrepreneurs in the media.

The correct answer is: Centralization of ownership has led to an industry controlled by a few large companies. Nearly all of the media industry is controlled by a few large companies, and there are significant barriers to entry in this market.

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