5. Some analysts consider oligopolies to be potentially less efficient than monopoly firms because at least monopoly firms tend to be regulated. Arguments in favor of a more benign view of oligopolies include: LO14.5

a. Oligopolies are self-regulating.

b. Oligopolies can be kept in line by foreign competition.

c. Oligopolistic industries may promote technological progress.

d. Oligopolies may engage in limit pricing to keep out potential entrants.