An oligopolistic market may be difficult to enter because of government regulation or the expense of nonprice competition.

Question

Quizplus · Accepted Answer

Oligopolistic markets are dominated by a few large firms that control the market. These firms may establish barriers to entry through various means, such as government regulations, high startup costs, or expensive marketing and advertising campaigns. Therefore, entering an oligopolistic market may be difficult for new firms.

An Oligopolistic Market May Be Difficult to Enter Because of Government