An oligopoly might occur as a result of

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An oligopoly can occur due to various reasons, including economies of scale in production, government barriers to entry, and heavy advertising expenses. When economies of scale exist, the larger firms in the industry will have a cost advantage over smaller ones, making it difficult for new firms to enter the market and effectively compete. In some cases, governments may set up regulations and barriers to entry through licensing requirements or high taxes, limiting the pool of potential competitors. Lastly, advertising can be a way for existing firms to establish a loyal customer base and differentiate themselves from competitors, making it difficult for new firms to gain traction in the market. Thus, all of the above reasons can contribute to the formation of an oligopoly.

An Oligopoly Might Occur as a Result of