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. Third, oligopolistic firms may produce either differentiated or homogeneous products.

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: -Barriers to entry is an economics and business term describing factors that can prevent or impede newcomers into a market or industry sector, and so limit competition. These can include high start-up costs, regulatory hurdles, or other obstacles that prevent new competitors from easily entering a business sector.

Detailed explanation-4: -Some examples of those are electric utilities, telecommunications or cable television due to very high fixed costs of establishing networks. Similarly, pharmaceutical companies or similar industries with very high levels of regulation provide high barriers to entry.

Detailed explanation-5: -Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors.