Question

Oli gopolistic industries are characterized by:_______
A) a few large firms and no barriers to entry.
B) large number of firms and no barriers to entry.
C) few large firms and substantial barriers to entry.
D) large number of firms and substantial barriers to entry.

Answer 1

Answer:

C) few large firms and substantial barriers to entry.

Explanation:

Oligopolistic industries refer to markets that have few companies that dominate and that have an important influence. Because of the amount of businesses in the industry, they are informed about the actions of the other companies. Also, it is difficult to enter to this type of markets as they usually require large investments or there are economies of scale. Because of this, the sentence that adjust to the characteristics of oligopolistic industries is: few large firms and substantial barriers to entry.