Which of the following is a similarity between a monopoly and an oligopoly with differentiated products?

Question

Quizplus · Accepted Answer

The similarity between a monopoly and an oligopoly with differentiated products is that in both markets the long-run equilibrium price exceeds marginal cost. This is because both types of markets have market power to set prices above their costs. However, there is a difference in the number of sellers as a monopoly has one seller while an oligopoly has a few sellers. Option A is false as there are significant barriers to entry in both markets. Option C is only applicable to a monopoly. Option D is false as firms in both markets can earn positive economic profit in the long run.

Which of the Following Is a Similarity Between a Monopoly