If an oligopolist incurs losses in the short run, then in the long run
A)The oligopolist will go out of business
B)The oligopolist will stay in business
C)The oligopolist will break-even
D)Any of the above

Question

Quizplus · Accepted Answer

In the long run, an oligopolist facing short-run losses may either exit the market, adjust strategies to break-even or become profitable, or continue operating under certain conditions (e.g., expecting future profits, covering variable costs). The outcome depends on various factors, including market conditions, the firm's financial health, and strategic decisions.

If an Oligopolist Incurs Losses in the Short Run, Then