Oligopoly is
A) like monopoly because there are barriers to entry.
B) like perfect competition because oligopoly firms all sell homogeneous goods.
C) like monopolistic competition because oligopoly firms all sell differentiated goods.
D) like perfect competition because there are many firms in the industry.

Question

Quizplus · Accepted Answer

Oligopoly is like a monopoly in that there are significant barriers to entry, which prevent new firms from easily entering the market. This leads to a few dominant firms controlling the market, unlike perfect competition or monopolistic competition.

Oligopoly Is