If a legal oligopoly exists,
A) the firms always engage in a "tit for tat" strategy.
B) there is the possibility that the market is large enough for more firms.
C) the firms never collude.
D) monopoly profits cannot be earned.
E) the firms may legally merge and become a monopoly.

Question

Quizplus · Accepted Answer

A legal oligopoly implies that there are barriers to entry that prevent more firms from entering the market, but it does not necessarily mean the market is too small for more firms.

If a Legal Oligopoly Exists