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Question
Which of the following statements is true?
Options
The existence of oligopoly requires that a few firms are able to gain significant market power but can't prevent other smaller competitors from entering the market.
The existence of an
Oligopoly is characterised by the following characteristics:
a small number of firs or a big market share
Entry is difficult.
oligopoly requires that a large number of firms are able to gain significant market power, preventing other smaller competitors from entering the market.
The existence of oligopoly requires that a few firms are able to gain significant market power, preventing other smaller competitors from entering the market.
The existence of monopoly requires that a few firms are able to gain significant market power, preventing other smaller competitors from entering the market.
Solution
The existence of an oligopoly requires that a large number of firms are able to gain significant market power, preventing other smaller competitors from entering the market.
Explanation:
Oligopoly is characterised by the following characteristics:
- a small number of first or a big market share
- Entry is difficult.