Barriers to entry in an oligopoly market.

1. High capital requirement for entry such as setting up costs can be described as one of the barriers for firms to get in an oligopoly market structure.
2. The earlier firms that are operation often enjoy economies of scale in the market this makes it a challenge for the for new firms to compete with them.
3. Government regulation in terms of licenses to a given market may pose a barrier to entry of new firm to a given market. if the government licenses only a few oligopoly firms, there will a barrier to the entry of a new firm.
4. First entrants to a market may control essential factors or resources of production this, in turn, poses a challenge for other firms to make entry to this market.

At times when a firm wants to leave a market, some obstacles may exist and they include:

1. A firm invests heavily on special assets for operations whose transfers may prove difficult therefore the exit may result in the loss of these assets.
2. On exit from the market the firm may face some exit costs in the payment of fees when agreements with suppliers are terminated and workers laid off. When a firm closes down indefinitely, there will be the termination of many contracts. Since the firm will have breached the terms of these contracts, the firm will be liable to pay the whole amount to individuals.