Oligopolistic industries are characterized by ___________.

a few dominant firms and substantial barriers to entry

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a few large firms and no entry barriers

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a large number of amall firms and no entry barriers

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one dominant firm and low entry barriers

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Solution

The correct option is D a few dominant firms and substantial barriers to entry
Oligopoly is a situation where few firms dominate the market and they are very highly concentrated. There is also restrictions on entry and exit of firms. Hence, oligopolistic industries are characterized by a few dominant firms and substantial barriers to entry.

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