Diseconomies of scale is one explanation for why an oligopoly exists.

Name: Diseconomies of scale is one explanation for why an oligopoly exists.
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Question

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Diseconomies of scale refer to the increased per-unit costs as a firm grows, which is not a reason for oligopoly. Oligopolies often exist due to economies of scale, where large firms can produce at lower costs, creating barriers to entry for smaller competitors.

Diseconomies of Scale Is One Explanation for Why an Oligopoly