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In oligopolistic markets Group of answer choices all firms are price takers there are no barriers...

In oligopolistic markets

Group of answer choices

all firms are price takers

there are no barriers to entry

there are only a few firms

there are many firms

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Answer #1

Answer. (c) there are only a few firms

Explanation: This is an important characteristic of oligipolistic markets. They have very few firms participating. When there are only 2 firms, it is called a duopoly. So of course there are barriers to entry by which they block new entrants, like high setup costs, or licensed production, etc. Also since there are very few firms, so they are interdependent on each other's actions. This is the reason they are price makers and keep prices very close to each other. They earn profits higher than a perfectly competitive firm, but lower than a monopolistic firm.

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