Explain whether the following statement is true or false. There is no mark for stating true or false; the mark is awarded for the explanation and the illustration only. One way in which monopolistic competition differs from oligopoly is there are no barriers to entry in oligopolies. Immersive Reader

The statement is false.

Explanation:

Oligopoly is a market situation where the market of a given good or service is dominated by a few strong, powerful providers. It could be described as a mix between monopoly and perfect competition, where there are several players in the market, but not so many that they can not influence the market price, and in which those providers are strong enough to establish a monopoly if they could. Examples of oligopoly markets are the market for cars and oil, among others, in which there are few but powerful enterprises in the market.

In oligopolies there are almost as many barriers as in monopolies: although there is competition between companies, for a new company it is almost impossible to enter the market since prices, quality and customers are retained by companies already established in the market.

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