Explain five circumstances under which firms may acquire oligopoly power

Answer:

-When the government controls the policy by allowing only a few firms to be the only producers of the commodity
-When initial cost of production is too high and other firms cannot afford
-When a few firms have patent rights or trademarks
such that the product they produce cannot be copied.
-Where the size of the market is small such that it is served best by a few firms
-When there is unique technology by a few firms keep potential competitors away.

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