### Why do oligopolies exist?Oligopolies exist due to [ dropdown menu options available: ]- **Barriers to entry**- **Network externalities**- **Intense competition**- **Market failure**#### Explanation:The image contains a question about the existence of oligopolies with a dropdown menu listing possible reasons. The user can select one of the following factors that contribute to the formation and persistence of oligopolies:1. **Barriers to Entry**: High costs, legal restrictions, or other obstacles limit new firms from entering the market, allowing a few large firms to dominate.2. **Network Externalities**: The value of a product or service increases as more people use it, often giving existing large firms an advantage that smaller entrants cannot easily overcome.3. **Intense Competition**: In some markets, only a few firms can survive due to the high level of competition and efficiencies required, leading to oligopoly structures.4. **Market Failure**: Misallocation of resources and inefficiencies in the market might cause or perpetuate oligopolistic conditions. This dropdown menu feature allows students to explore and test their understanding of different economic concepts related to oligopolies.

Different market structures are categorized on the basis of the number of buyers and sellers, the…

Answered: Why do oligopolies exist? Oligopolies…

Why do oligopolies exist? Oligopolies exist due to barriers to entry network externalities intense competition market failure

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Why do oligopolies exist?

Oligopolies exist due to [ dropdown menu options available: ]

- **Barriers to entry**
- **Network externalities**
- **Intense competition**
- **Market failure**

#### Explanation:

The image contains a question about the existence of oligopolies with a dropdown menu listing possible reasons. The user can select one of the following factors that contribute to the formation and persistence of oligopolies:

1. **Barriers to Entry**: High costs, legal restrictions, or other obstacles limit new firms from entering the market, allowing a few large firms to dominate.

2. **Network Externalities**: The value of a product or service increases as more people use it, often giving existing large firms an advantage that smaller entrants cannot easily overcome.

3. **Intense Competition**: In some markets, only a few firms can survive due to the high level of competition and efficiencies required, leading to oligopoly structures.

4. **Market Failure**: Misallocation of resources and inefficiencies in the market might cause or perpetuate oligopolistic conditions.

This dropdown menu feature allows students to explore and test their understanding of different economic concepts related to oligopolies.

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