Option A) Costs of starting a competing business are too high.
Option B) The government restricts market entry.
Option C) The number of options in a market confuses consumers.
Option D) No competition exists between producers.
Answer:- The right answer is Option A) Costs of starting a competing business are too high.
The option that helps enable an oligopoly to form within a market is the costs of starting a competing business are too high. In an oligopoly, there are only a few large firms dominating the market, and they tend to have significant barriers to entry, such as high start-up costs, that prevent other businesses from entering and competing in the market. This high barrier to entry allows existing firms to maintain their market share and pricing power, leading to a lack of competition between producers.
Option B, the government restricts market entry, can also contribute to an oligopoly, but this is typically not the case in a free-market economy, where government intervention is limited.
Option C, the number of options in a market confuses consumers, is not likely to contribute to an oligopoly, as it would instead lead to a more competitive market, with each firm striving to differentiate itself from the others.
Option D, no competition exists between producers, is a result of an oligopoly, not a cause. An oligopoly is characterized by limited competition between producers, which allows them to control prices and maintain market share.