Relatively low barriers to entry and modest economies of scale help explain why markets are oligopolistic.

Name: Relatively low barriers to entry and modest economies of scale help explain why markets are oligopolistic.
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Question

Quizplus · Accepted Answer

Low barriers to entry and modest economies of scale would typically lead to more competitive markets, not oligopolistic ones. Oligopolies are characterized by high barriers to entry and significant economies of scale, which limit the number of competitors in a market.

Relatively Low Barriers to Entry and Modest Economies of Scale