Final answer:
An industry where a small number of large firms dominate and have price-making power, often with significant barriers to entry, is called an oligopoly.
Step-by-step explanation:
An industry in which more than one business has price-making power and there are typically barriers to entry is called an oligopoly. Oligopolies are characterized by a few large firms that dominate the market and make up a significant percentage of total production. These firms have the ability to set prices and exert control over the market, much like a monopoly. However, unlike a monopoly where there is only one firm, an oligopoly consists of multiple dominant firms. Barriers to entry, such as economies of scale, legal restrictions, control of resources, and intellectual property rights, can prevent new competitors from entering the market. The behavior of oligopolistic firms can vary between competitive to collusive, where firms may cooperate to set prices and outputs similar to a monopoly.