Those who contend that oligopolists are less likely than more competitive firms to engage in R&D say that
A)oligopolists have little incentive to introduce costly new technology and produce new products when they currently are earning large economic profit using existing technology and selling existing products.
B)the undistributed profits of oligopolists give them a source of readily available, relatively low-cost funds for financing R&D.
C)entry barriers enable oligopolists to sustain the profits they gain from innovation.
D)the large size of oligopolists' R&D departments allows them to use very specialized, expensive R&D equipment and employ teams of specialized researchers.

Question

Quizplus · Accepted Answer

Oligopolists may have less incentive to engage in R&D because they are already making significant profits with their current technology and products, reducing the motivation to invest in costly new developments.

Those Who Contend That Oligopolists Are Less Likely Than More