Large barriers to entry exist in which of the following market structures?
A) Perfect competition only
B) Perfect competition and monopolistic competition
C) Oligopoly and monopoly
D) Monopoly only

Question

Quizplus · Accepted Answer

Oligopoly and monopoly market structures have large barriers to entry. In an oligopoly, a small number of firms dominate the market, which makes it difficult for new firms to enter and compete with them. Barriers to entry in a monopoly arise due to government regulations, patents, and the high cost of setting up infrastructural networks. In perfect competition and monopolistic competition, there are no or fewer barriers to entry, and firms can easily enter and exit the market.

Large Barriers to Entry Exist in Which of the Following