It is most difficult for new firms to enter

Question

Quizplus · Accepted Answer

In an oligopolistic market, there are only a few large firms that dominate the market. Entry barriers such as high start-up costs, strict government regulations, and limited access to distribution channels make it difficult for new firms to enter and compete with established firms. In contrast, a perfectly competitive market has low entry barriers, and a monopolistically competitive market has a large number of small firms with differentiated products, making it easier for new firms to enter and compete.

It Is Most Difficult for New Firms to Enter