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Grade 8Physical Chemistry

Oligopolistic industries are characterized by ___________.
A
a few dominant firms and substantial barriers to entry
B
a few large firms and no entry barriers
C
a large number of amall firms and no entry barriers
D
one dominant firm and low entry barriers

Profile image of Shamit Jain
5 Years agoGrade 8
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1 Answer

Profile image of Omveer Singh
5 Years ago

Oligopoly is a situation where few firms dominate the market and they are very highly concentrated. There is also restrictions on entry and exit of firms. Hence, oligopolistic industries are characterized by a few dominant firms and substantial barriers to entry.