One of the strongest reasons that oligopolies exist is due to
A) the homogeneity of their products.
B) marginal cost pricing.
C) lowest cost production.
D) economies of scale.

Question

Quizplus · Accepted Answer

Oligopolies are able to achieve economies of scale due to their large size and market share. This enables them to produce goods at a lower cost than their competitors. Therefore, oligopolies are often characterized by a few large firms dominating the market, which can lead to higher barriers to entry for new competitors.

One of the Strongest Reasons That Oligopolies Exist Is Due