The market structure in which natural or legal barriers prevent the entry of new firms and a small number of firms compete is

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Quizplus · Accepted Answer

The definition given in the question fits the market structure of an oligopoly, where there are only a few dominant firms and the entry of new firms is restricted due to barriers such as economies of scale, patents, or government regulations. Monopoly refers to a market with only one dominant firm, monopolistic competition involves many firms selling differentiated products, and perfect competition involves many small firms selling identical products with no barriers to entry. Duopoly refers to a market with only two dominant firms.

The Market Structure in Which Natural or Legal Barriers Prevent