The lack of success among monopolistic competitive and oligopolistic firms to become monopolies can be attributed primarily to
A) lack of business skills
B) lack of financing
C) failure to maximize profit
D) inability to establish effective barriers to entry
E) inefficient production methods

Question

Quizplus · Accepted Answer

The primary reason monopolistic competitive and oligopolistic firms struggle to become monopolies is their inability to establish effective barriers to entry. Barriers to entry are crucial for maintaining a monopoly, as they prevent new competitors from entering the market and challenging the dominant firm's position. Without significant barriers, it's difficult for any firm to secure a monopoly status.

The Lack of Success Among Monopolistic Competitive and Oligopolistic Firms