Question

why is competition limited in an oligopoly?
high entry costs prevent new producers from entering the market.
producers completely refuse to engage in price wars.
no major distinctions exist between producers.
producers actively segment the market to avoid competition.

Explanation:

In an oligopoly, high entry - costs like large capital requirements for infrastructure or brand - building prevent new firms from entering. This limits competition as the existing few firms face less threat from new entrants. Producers may engage in price wars, there are often distinctions between producers, and market segmentation is not the main reason for limited competition compared to high entry costs.

Answer:

High entry costs prevent new producers from entering the market.