What type of market structure can Apple Company be considered to be in? Clearly explain your answer, and provide at least 3 reasons to support your answer.

Apple Company can be considered in an oligopoly market structure. Apple is a luxury brand that operates in an oligopoly.

Reasons to support this answer are:

• Apple works in an oligopoly because there are just like an oligopoly market; there are few luxurious brands (few sellers) in the market.
• Just like an oligopoly, entry and exit barriers are high. A new firm cannot enter the market and compete directly with companies like Apple.
• In an oligopoly, firms are the price maker. Similarly, Apple also sets prices of its goods and does not take forces of demand and supply into consideration.