Describe the barriers to entry for oligopolistic industries.

In an oligopolistic industry, there can be the following barriers to entry:

• Economies of scale which means the existing firms produce at a large scale and experience cost advantages due to this reason. New firms may have problems achieving financial results similar to large companies.   

• Patents, licenses, and other governmental requirements that make it difficult to start a business in the industry since a bigger investment is needed.   

• Access to key resources; if only a few firms have access to resources used in the production process, it is highly difficult to enter the market.   

• Expensive technology used by existing firms which increases the investment necessary to enter the market. The aviation industry is a good example here.