Which does NOT cause an industry that might otherwise be competitive to tend toward oligopoly?
A) economies of scale
B) barriers to entry
C) mergers
D) strategic independence

Question

Quizplus · Accepted Answer

Strategic independence refers to each firm in the industry having a unique product, service, or business model, which reduces direct competition and can increase profitability. This does not tend to promote oligopoly, but instead increases diversity and differentiation within the industry. Economies of scale, barriers to entry, and mergers are all factors that can lead to the concentration of market power among a few large firms and promote the formation of an oligopoly.

Which Does NOT Cause an Industry That Might Otherwise Be