Which of the following best exemplifies an oligopoly in the United States?

The automobile industry best exemplifies an oligopoly in the United States due to the presence of a relatively small number of large firms that dominate the market. This industry is characterized by a high level of market concentration, with a few major players like Ford, General Motors, and Toyota controlling significant shares of the market. These firms often engage in competitive strategies that are interdependent, meaning the actions of one company (such as pricing changes or new product launches) can directly impact the others.

In an oligopoly, companies have some level of market power, which allows them to set prices above marginal costs and earn a higher profit margin compared to markets that are perfectly competitive. Additionally, the barriers to entry in the automobile industry are considerable, as they require substantial capital investment, technological expertise, and compliance with regulatory standards. These factors reinforce the oligopolistic nature of the industry, separating it from markets characterized by perfect competition or monopolistic competition.

Comparatively, while the electric power provision and telephone service can also exhibit oligopolistic characteristics, they often involve more regulatory influence and public utility considerations that affect competition differently. The clothing manufacturing market is typically considered more competitive, with a large number of manufacturers, lower barriers to entry, and a wider variety of products available