An oligopoly
A)requires government licensing.
B)has relatively few firms, but they are still price takers.
C)always collude to keep prices high.
D)has barriers to entry.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure where a few large firms dominate the market, leading to high barriers to entry for new firms. This means that the existing firms have a significant advantage and can maintain relatively stable prices, making it difficult for new firms to enter the market. Therefore, the correct answer is D, which mentions the presence of barriers to entry. Government licensing is not always required in oligopolies, and firms in an oligopoly may not necessarily be price takers or collude to keep prices high.

An Oligopoly