ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Suppose that a firm seeks to enter a market, but it quickly realizes that its employees do not have the technical skills needed for the firm to compete in that market. What do economists call the factor that is keeping this firm out of that market? D. barrier to entry.

Detailed explanation-2: -In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power. Consumers do not have any alternative and must pay the price set by the seller.

Detailed explanation-3: -An oligopoly is defined as a market structure with few firms and barriers to entry. Oligopoly = A market structure with few firms and barriers to entry. There is often a high level of competition between firms, as each firm makes decisions on prices, quantities, and advertising to maximize profits.

Detailed explanation-4: -It is easier for a new firm to enter the market under monopolistic competition than oligopoly because monopolistic competition offers freedom to enter or exit a market while oligopoly has many barriers to enter or exit the market, like huge start-up costs and patents.