New Competitors Are Discouraged in an Oligopoly Primarily Because of

question 24

Multiple Choice

New competitors are discouraged in an oligopoly primarily because of

• A) lack of knowledge.
• B) market already too crowded with competitors.
• C) large investment in start-up costs.
• D) family dominated market.

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Definitions:

Isoquant

A curve that represents all the combinations of inputs that result in the production of a given level of output, showcasing the trade-off between different factors of production.

Output

The amount of goods or services produced by a company, industry, or economy within a specific period.

Production Function

A mathematical formula that describes the relationship between inputs used in production and the output of goods or services.

Returns To Scale

A concept in economics that describes the change in output as a result of a proportional change in all inputs.