ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A monopoly is the most challenging market to enter. Below is the source of monopoly power which makes it difficult for other firms to enter; Legal barriers. For example, a company may patent its product to protect its self from competitors for a given period.

Detailed explanation-2: -Oligopoly has barriers to entry since a small number of firms control a large share of the market. The small number of large firms may have achieved economies of scale and thereby reduced cost, dissuading other new players, who have a higher cost to enter the market.

Detailed explanation-3: -There are significant barriers to entry, including high startup costs. An oligopoly is when there are two or more firms that have a significant market share. In such a market, entry costs are high which makes it difficult for new companies to enter.

Detailed explanation-4: -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. Third, oligopolistic firms may produce either differentiated or homogeneous products.