Which of the following factors does not stall the entry of other firms in an Oligopolistic industry :
Increase in demand expands the market and can encourage new entry. Huge advertising expenditure incurred by existing firms can create brand barriers; economies of scale make…
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Which of the following factors does not stall the entry of other firms in an Oligopolistic industry :
Answer and explanation
Correct answer D
Increase in demand expands the market and can encourage new entry. Huge advertising expenditure incurred by existing firms can create brand barriers; economies of scale make small-scale entry costly; technology can be protected, costly or unavailable to entrants. Thus these three can obstruct entry.
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UGC NET Economics