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Basic Question 2 of 17

When barriers to entry are high and the industry is made up of a few large firms, there is ______.

A. more competition as compared to an industry with a large number of small firms
B. a strong case for a government take-over of the industry
C. less competition than in an industry with a large number of small firms, but there will be competition that takes the form of efforts to improve quality

User Contributed Comments 1

User Comment
EEEEvia why not B?
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

explain supply and demand relationships under oligopoly, including the optimal price and output for firms as well as pricing strategy

CFA® 2025 Level I Curriculum, Volume 1, Module 1.