In the Singapore market for taxis and private hire vehicles, two major firms merged and this created one firm holding 80% of the market. The other 20% of the market was made up of thousands of independent taxi drivers. Which statement best describes what has effectively happened to the market structure?
- AThe market has become monopolistically competitive.
- BThe market has changed from an oligopoly to a monopoly.
- CThe market has changed from perfect competition to an oligopoly.
- DThe market remains an oligopoly.