An oligopoly created because of economies of scale is called a
A) natural oligopoly.
B) legal oligopoly.
C) public oligopoly.
D) monopolistic oligopoly.
E) scale oligopoly.

Question

Quizplus · Accepted Answer

A natural oligopoly occurs when economies of scale are so significant that it is most efficient and cost-effective for a small number of firms to operate in the market. This type of oligopoly is created naturally without any legal barriers to entry.

An Oligopoly Created Because of Economies of Scale Is Called