Multiple Choice
Why might only a few firms dominate an oligopolistic industry?
A) A natural or legal barrier to entry exists.
B) Perfectly elastic demand makes small-scale operation economically inefficient.
C) Decreasing returns to scale may make small-scale firms more advantageous.
D) Inelastic market demand leads to the domination of the industry by a few firms.
E) It is due to the outcome of the prisoners' dilemma.
Correct Answer:
Verified
Correct Answer:
Verified
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