alleryStart learning →Which is an important barrier to entry in an oligopoly?
APatents and licences
BLow capital needs
CCheap, simple technology
DPerfect information
Answer & Solution
Correct answer: A. Patents and licences
Licences, patents, scale economies and costly technology all keep new firms out.
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Related questions
Critics say the perfect competition model wrongly shows all agents as:The equilibrium price of a perfectly competitive market is fixed where:Which markets come closest to perfect competition in practice?Which economic theorem says competitive equilibria are Pareto-efficient?In the short run, perfectly competitive firms are:A firm sells 200 units at Rs 50 each, with average cost of Rs 42 per unit. Its economic prNormal profit is treated by economists as a component of:What attracts new firms into a perfectly competitive industry?