ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Second, an oligopolistic market has high barriers to entry. This condition distinguishes oligopoly from perfect competition and monopolistic competition in which there are no barriers to entry.

Detailed explanation-2: -High capital requirement for entry such as setting up costs can be described as one of the barriers for firms to get in an oligopoly market structure. The earlier firms that are operation often enjoy economies of scale in the market this makes it a challenge for the for new firms to compete with them.

Detailed explanation-3: -The degree of product differentiation, the pricing power of the producer, the barriers to entry of new producers, and the level of non-price competition (e.g., advertising) are all low in perfect competition, moderate in monopolistic competition, high in oligopoly, and generally highest in monopoly.

Detailed explanation-4: -Contracts, patents, and licenses: It becomes difficult for new firms to enter the market when the existing firms own licenses, patents, or exclusivity contracts. Loyalty schemes: Special schemes and services help oligopolists retain customer loyalty and discourage new entrants who wish to gain market share.