Under oligopoly, a few large firms control most of the production and sale of a product because:

Question

Quizplus · Accepted Answer

Oligopoly is characterized by high barriers to entry, and economies of scale are typically a significant barrier to entry, making it difficult for smaller firms to compete with larger firms. Larger firms can achieve economies of scale, which lead to lower costs and ultimately greater profits than smaller firms can achieve. Thus, oligopoly results in a few large firms controlling most of the production and sale of a product.

Under Oligopoly, a Few Large Firms Control Most of the Production