In the long run, an oligopolist is most likely to
A) Experience economic profits because of barriers to entry.
B) Experience zero economic profits because barriers to entry do not exist in the long run.
C) Produce at the most technically efficient output level due to long-run competition.
D) Face a straight demand curve.

Question

Quizplus · Accepted Answer

Oligopolists can maintain economic profits in the long run due to barriers to entry, such as high startup costs, access to technology, or regulatory hurdles, which prevent new competitors from entering the market easily.

In the Long Run, an Oligopolist Is Most Likely to