Questions: Which of the following best defines the term oligopoly? control of a commodity or service by a foreign government control of a commodity or service by the state control of an entire industry by one firm control of a commodity or service by a small number of large, powerful companies

The answer is: control of a commodity or service by a small number of large, powerful companies.

Explanation for each option:

1. Control of a commodity or service by a foreign government: This option describes a situation where a foreign government has control, which is not related to the concept of oligopoly. This is more akin to foreign state control or influence.

2. Control of a commodity or service by the state: This option refers to state control or a government monopoly, which is not the definition of an oligopoly. An oligopoly involves private companies, not state control.

3. Control of an entire industry by one firm: This describes a monopoly, where a single firm dominates the entire market. An oligopoly, on the other hand, involves multiple firms.

4. Control of a commodity or service by a small number of large, powerful companies: This is the correct definition of an oligopoly. In an oligopoly, a few large firms have significant control over a market or industry, which allows them to influence prices and other market factors. Examples include the automobile industry and the airline industry, where a few companies dominate the market.