Answer and explanation:
An Oligopoly takes place when a market is controlled by a small group or two or more firms. Businesses in an oligopoly can agree to price collusion and create barriers to entry for new commerce. If the businesses do not, they would likely be forced to lower their prices and open the market for newer smaller firms.
Thus, barriers to competitor entry are the key factor that allows oligopolies to keep their prices at a certain level which ensures profits are steady over time.
