The MOST important source of oligopoly in an industry is:
A)economies of scale.
B)government regulation.
C)technological inferiority.
D)ownership of plentiful resources.

Question

Quizplus · Accepted Answer

Economies of scale allow larger firms to operate more efficiently and at lower costs than smaller firms, which creates barriers to entry for potential competitors. This leads to a concentration of market power among a few large firms, resulting in an oligopoly. Government regulations, technological inferiority, and ownership of plentiful resources may also contribute to oligopoly, but economies of scale are generally considered the most important factor.

The MOST Important Source of Oligopoly in an Industry Is