why is competition limited in an oligopoly?\n○ high entry costs prevent new producers from entering the…
why is competition limited in an oligopoly?\n○ high entry costs prevent new producers from entering the market.\n○ producers completely refuse to engage in price wars.\n○ no major distinctions exist between producers.\n○ producers actively segment the market to avoid competition.
Answer
Brief Explanations:
In an oligopoly, high entry - costs like large capital requirements or economies of scale make it difficult for new producers to enter. This limits competition as the few existing firms face less threat from new entrants. Producers may engage in price wars, there are often product distinctions, and while market - segmentation can be a strategy, high entry costs are the main limiting factor.
Answer:
High entry costs prevent new producers from entering the market.