In 2023, regulatory authorities launched a formal investigation into the cloud infrastructure market, where three dominant 'hyperscalers' control over 80% of the market. The probe focused on high egress fees, restrictive licensing terms, and potential tacit coordination that prevented smaller, innovative providers from competing effectively.
Evaluate, using an appropriate diagram(s), whether barriers to entry are the most significant disadvantage of an oligopolistic market.
42 exam-style questions on OCR A Level Economics Market structures, covering Perfect competition, Monopoly, Monopolistic competition, Oligopoly, and Contestable markets. Each one has a worked solution and a mark scheme showing where the marks go.