In which set of market models are there the most significant barriers to entry?
A) monopolistic competition and pure competition
B) monopolistic competition and pure monopoly
C) oligopoly and monopolistic competition
D) oligopoly and pure monopoly

Question

Quizplus · Accepted Answer

In oligopoly and pure monopoly markets, there are significant barriers to entry that prevent new firms from entering the market. In an oligopoly, existing firms hold a significant market share, and any new entrant would struggle to gain a foothold, due to the established firms' competitive advantages. Similarly, in a pure monopoly, there is only one firm operating in the market, and that firm controls all the resources, technology, and patents, making it extremely challenging for any new firm to enter the market. In comparison, in monopolistic competition and pure competition, there are relatively low barriers to entry, with many firms operating, and new firms can quickly enter the market.

In Which Set of Market Models Are There the Most