Which of the following factors tends to foster the development of an oligopoly?

A) economies of scale
B) foreign competition
C) antitrust legislation
D) low barriers to entry

Oligopoly

An industrial configuration in which a small group of companies exercises significant authority over market pricing and competition.

Economies of Scale

The reduction in per-unit cost as the scale of production increases, leading to greater efficiency and lower costs for large-scale producers.

Foreign Competition

The presence and impact of competitors from other countries in a domestic market, often influencing prices, market shares, and industry standards.