A Which of these is a characteristic shared by both oligopol

A.

Which of these is a characteristic shared by both oligopolies and monopolies?

normal profits in the long run

significant barriers to entry into the market

mutual interdependence

a few dominant firms in the industry

B.

The key characteristic of monopolistic competition is:

ease of entry into the market.

long-run economic profits.

product differentiation.

mutual interdependence among firms.

Solution

A.

In case of monopoly, there are only one firm which produces a particular good. It means entry of new firm is restricted by the monolist firm.

An oligopoly can be defined a market type in which few largest firm control almost all the market.

It means entry of new firm is restricted.

Hence it can be said that significant barrier to entry into the market is the common characteristics of the both types of market.

Hence option second is the correct answer.

Option second is; significant barrier to entry into the market.

B.

The characteristics of monopolistic competition are that there are large number of buyers and sellers, firms are free to enter and exit.

There is product differentiation.

Hence it can be said that the characteristic of monopolistic competition is product differentiation.

Hence option third is the correct answer.

Option third; product differentiation.