Explain the implications of the following in an oligopoly market:
(a) Barriers to entry of new firms
(b) A few or a few big sellers

a. In an oligopoly market, there are barriers to the entry of new firms. The patents rights are largely created for these firms and hence entry is restricted to new firms. The existing firms need not face any problem of new firms and they are able to earn-extra normal profit.
b. Only few number of firms in the industry but they are big firms dominate the market for product. They establish brand loyalty through intense advertising. Hence, they are able to earn extra-normal profit.