Oligopolies exist and do not attract new rivals because A. of barriers to entry. B. there can be no product differentiation. C. of competition. D. the firms keep profits and prices so low that no rivals are attracted.

Question

Business

Macho

9 December, 18:32

Oligopolies exist and do not attract new rivals because A. of barriers to entry. B. there can be no product differentiation. C. of competition. D. the firms keep profits and prices so low that no rivals are attracted.

+4

Answers (1)

Know the Answer?

Kaylah Cole · Answer 1

Answer: Oligopolies exist and do not attract new rivals because: " A. of barriers to entry.".

Explanation: One of the main characteristics of the oliopolio is the existence of barriers to entry, so there is the fact that there are few companies in a market. In general, one of the most relevant is usually the economies of scale that make the entry of A company is only viable when it can reach a significant proportion of the market. Although we could also add legal or reputational barriers (brands that have been in the market for a long time).