The television broadcast industry consists of just a few very large companies

The answer is A. An oligopoly is a market structure where a few large firms control a dominant share of the market. The existing firms are protected by significant barriers to entry, in the television channel market, it is expensive and difficult to get past the regulations if you are a new firm. Firms in an oligopoly are also difficult to close down and if one of the television stations faced financial difficulties, they would likely be purchased by a rival firm since they own intellectual property and other assets that have value. Oligopolistic firms also must pay attention to their rival firms. Typically, firms will also copy the innovation and pricing of other firms when in an oligopoly like the television content market.

Here are the reasons broadcast TV does not fit the definition of these market structures:

• perfect competition

To be perfectly competitive, it has to be easy to enter the market for new firms.

• monopolistic competition

To be monopolisticly competitive, it has to be easy to enter the market for new firms.

• monopoly

A monopoly is a market where a single firm has a dominant share of the sales.

• monopsony

A monoposony is a market with a single buyer of the product, but many sellers.