Consider the following characteristics:
A.a market structure with barriers to entry
B.demand curves that are easily identified
C.firm cannot make zero profits in the long run
D.firm can reap long-run profits.
Which of the characteristics in the list above is shared by an oligopolist and a monopolist?
A)a, b, c, and d
B)a, b, and d
C)a, c, and d
D)a and d

Question

Quizplus · Accepted Answer

Both monopolists and oligopolists have barriers to entry (a), and can reap long-run profits (d). However, oligopolists do not have easily identifiable demand curves (b), unlike monopolists. Furthermore, in the long run, firms in both monopolies and oligopolies cannot make zero profits (c), but only monopolists are guaranteed positive profits.

Consider the Following Characteristics