New competitors are discouraged in an oligopoly primarily because of

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In an oligopoly, there are usually only a few large firms dominating the market. These firms have significant market power and often require a large investment in startup costs, such as research and development, marketing, and production infrastructure. This high cost of entry makes it difficult for new competitors to enter the market and compete with the established firms, thereby discouraging new entrants.

New Competitors Are Discouraged in an Oligopoly Primarily Because of