What is a similarity between oligopolists and monopolists?
A) Both set price equal to marginal cost.
B) Both produce a unique product.
C) Economies of scale provide a barrier to entry for both.
D) Allocative efficiency is achieved by both.

Question

Quizplus · Accepted Answer

Both oligopolies and monopolies benefit from economies of scale, which make it difficult for new firms to enter the market due to high start-up costs. This leads to a lack of competition, allowing both oligopolists and monopolists to have greater control over the market and the ability to charge higher prices. Therefore, both face similar barriers to entry.

What Is a Similarity Between Oligopolists and Monopolists