The most common reason for the existence of oligopolies is
A) ease of entry.
B) economies of scale.
C) diseconomies of scale.
D) advertising.

Question

Quizplus · Accepted Answer

Oligopolies often arise due to economies of scale. As firms in an industry grow larger, they can produce goods or services more efficiently, leading to lower costs per unit. This makes it difficult for new firms to enter the industry and compete with established firms, leading to an oligopoly structure.

The Most Common Reason for the Existence of Oligopolies Is