In an oligopolistic market,high start-up costs form significant barriers to entry for new competitors.

Question

Quizplus · Accepted Answer

Oligopolistic markets are dominated by a few large firms, which typically have significant market power. One way they maintain this power is by creating barriers to entry for potential competitors. High start-up costs are one such barrier, as they make it difficult for new firms to enter the market and compete on equal terms with the established players. Therefore, the statement is true.

In an Oligopolistic Market,high Start-Up Costs Form Significant Barriers to Entry