Florida Teacher Certification Examinations (FTCE) Social Science Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Florida Teacher Certification Examinations (FTCE) Social Science Test. Explore multiple choice questions and study resources with detailed explanations. Ensure a high score on your exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a significant characteristic of oligopolies as a market structure?

High barrier to entry
Perfect competition
Easy market access
Numerous small businesses

The correct answer is: High barrier to entry

In an oligopoly, a significant characteristic is the existence of high barriers to entry, which makes it difficult for new competitors to enter the market. These barriers can manifest in various forms, such as significant capital investment, access to distribution channels, economies of scale enjoyed by existing firms, and legal regulations that protect established businesses. As a result, the market tends to be dominated by a few large firms, which can influence prices and output levels. This is in contrast to perfect competition, where many small firms exist and barriers to entry are low, or to a market structure with numerous small businesses, which aligns more with a competitive market. Therefore, the presence of high barriers ensures that only a limited number of firms can effectively compete in the market, thereby maintaining the oligopolistic structure.