Question

Why is competition limited in an oligopoly

Answer 1

The reason why it is so limited is because there is such a small amount of sellers and producers

Answer 2

High entry costs prevent new producers from entering the market.

Explanation:

An oligopoly is a kind of business wherein a surprisingly few numbers of producers produce nearly the whole supply of goods used by the people. Establishing up a brand and inciting enormous set-up expenses such as installing up production plants and mutable expenses like wages of workers related to different brands is very very hard as it requires billions of dollars.