In the situation of "Oligopoly" ______.

firms are not free to enter an industry

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firms are free to quit for any reason

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firms are not equally free to quit for any reason

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Both (A) and (C)

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Solution

The correct option is B Both (A) and (C)
In an Oligopoly market structure, there are barriers to the entry of new firms into the market. This is because there is a tough competition among the existing firms. This causes these few firms to have control over the resources, capital and also as they have been in the market for a long time, they get economies of scale. All this causes the market to be unattractive to new firms and becomes a barrier to entry.

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