The goal of an oligopoly is to maximize
A)Market share to achieve long-run economic profit.
B)Short-run profit to achieve long-run maximum revenue.
C)Short-run profit to achieve long-run market share.
D)Profit in the short run and to minimize cost in the long run.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few large firms dominate the market. The goal of these firms is to maximize their profits in the long-run, which they can achieve by increasing their market share. By increasing their market share, they can achieve economies of scale, reduce their costs and increase their profits. Therefore, the best choice is A, as oligopolies aim to maximize their market share in order to achieve long-run economic profit.

The Goal of an Oligopoly Is to Maximize