Table 1 shows the shares of sales in the market for industrial grain-drying machinery.
| Producer | Share of total sales |
|---|---|
| A | 25% |
| B | 22% |
| C | 19% |
| D | 16% |
| All other producers combined | 18% |
Explain why this market can be described as an oligopoly and what is likely to happen if one of the four largest producers cuts its price.
149 exam-style questions on AQA GCSE Economics 1.5 Competitive and concentrated markets, covering 1.5.1a The range of market structures, 1.5.1b Distinguishing between market structures, 1.5.2a Characteristics of a competitive market, 1.5.2b How producers operate in competitive markets, 1.5.2c The economic impact of competition, 1.5.3a Characteristics of a non-competitive market, 1.5.3b How producers operate in non-competitive markets, 1.5.3c Monopoly and oligopoly, 1.5.4a The labour market and wage determination, and 1.5.4b Gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.