Explain why are there only a few firms in an oligopoly market.

1.	Explain why are there only a few firms in an oligopoly market.
Answer» <html><body><p></p>Solution :The main reason why the numbers of firms is few is that there are barriers which prevent entry of firms into <a href="https://interviewquestions.tuteehub.com/tag/industry-1043031" style="font-weight:bold;" target="_blank" title="Click to know more about INDUSTRY">INDUSTRY</a>. <a href="https://interviewquestions.tuteehub.com/tag/patent-1148829" style="font-weight:bold;" target="_blank" title="Click to know more about PATENT">PATENT</a>, <a href="https://interviewquestions.tuteehub.com/tag/large-1066424" style="font-weight:bold;" target="_blank" title="Click to know more about LARGE">LARGE</a> <a href="https://interviewquestions.tuteehub.com/tag/capital-908677" style="font-weight:bold;" target="_blank" title="Click to know more about CAPITAL">CAPITAL</a> requirement, control over crucial raw materials etc. Prevent new firms from entering into industry. Only those who can <a href="https://interviewquestions.tuteehub.com/tag/cross-939411" style="font-weight:bold;" target="_blank" title="Click to know more about CROSS">CROSS</a> these barriers are able to enter.</body></html>

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