Which of the following would most likely create the setting for an oligopoly?
A) government grants Alex, Trent, and Alyse each a patent for their respective molybdenum based electric car batteries
B) market demand is two or more times less than quantity needed to produce at the minimum of the AC curve
C) market demand is two or more times more than quantity needed to produce at the minimum of the MC curve
D) insurmountable technological difficulty associated with producing similar products acts as an effective barrier to entry

Question

Quizplus · Accepted Answer

D  Patents create legal barriers to entry, leading to a few firms dominating the market, characteristic of an oligopoly. Similarly, technological barriers prevent new entrants, maintaining a few dominant firms.

Which of the Following Would Most Likely Create the Setting