Because the cost of starting a business in an oligopoly is usually _____, the number of firms entering it is _____.
A) low / high
B) high / low
C) high / high
D) low / low

Question

Quizplus · Accepted Answer

The cost of starting a business in an oligopoly is usually high due to barriers to entry such as high startup costs, brand recognition, and patents. As a result of these barriers, the number of firms entering the market is low. Therefore, choice B is the correct answer as it reflects both the high cost of entry and the low number of firms entering the market.

Because the Cost of Starting a Business in an Oligopoly