A steel industry would most accurately fit under which of the following market classifications?

a. pure competition

b. pure monopoly

c. monopolistic competition

d. oligopoly

• The answer is: d. oligopoly.

A steel industry would most accurately fit in the oligopoly market structure. This is because there are few firms in the industry and produce a homogenous/identical product. There ais also a large number of potential buyers, but only a few sellers. The steel market is also characterized with barriers for entry. Since steel is identical, the steel industry fall under pure oligopoly.