Which of the following factors tends to foster the development of an oligopoly?
A) economies of scale
B) foreign competition
C) antitrust legislation
D) low barriers to entry

Question

Quizplus · Accepted Answer

Economies of scale refer to a situation where a company can produce goods or services at a lower cost due to increased production, which makes it difficult for new firms to enter the market. This means that firms that are already in the market are likely to dominate it, leading to the development of an oligopoly.

Which of the Following Factors Tends to Foster the Development