Which type of market structure is characterized by a few large firms controlling the majority of the market?

The type of market structure characterized by a few large firms controlling the majority of the market is an oligopoly. In an oligopolistic market, a limited number of companies dominate, leading to interdependence among firms where the actions of one company can significantly affect the others. This structure often results in less competition compared to perfect competition, where many firms exist, and prices are driven by supply and demand. In an oligopoly, firms may also engage in collusive behavior, leading to higher prices and lower output than in more competitive markets.

Monopolistic competition involves many firms competing with differentiated products, and a monopoly is when a single firm has complete control over a market. Perfect competition, in contrast, features many small firms and no single entity has market control. Hence, oligopoly is the best description of a market structure with a few large firms dominating the market landscape.