Which of the following statements about oligopoly markets is true?
A) Restricted entry makes it difficult for new competitors to come into the market.
B) Unlike pure competitors, oligopolists can operate inefficiently over the long run.
C) Individual sellers can earn economic profits over both the short run and the long run.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the statements about oligopoly markets are true. Restricted entry does make it difficult for new competitors to enter the market, oligopolists can operate inefficiently over the long run due to lack of competition, and individual sellers can earn economic profits over both the short run and the long run due to their market power and ability to set prices above marginal cost.

Which of the Following Statements About Oligopoly Markets Is True