Like a pure monopoly,an oligopoly is characterized by
A) free entry and exit in the long run.
B) free entry and exit in the short run.
C) significant barriers to entry.
D) all firms in the market producing the socially efficient level of output in the long run.
E) a single firm selling a product with no close substitutes.

Question

Quizplus · Accepted Answer

An oligopoly is characterized by significant barriers to entry, which allows a small number of firms to dominate the market and potentially limit competition. This can lead to higher prices and reduced output compared to a perfect competition market structure. While there may be some limited entry or exit in the short or long run, it is not as free as in other market structures.

Like a Pure Monopoly,an Oligopoly Is Characterized by