If a firm has significant market power, say, over 40 percent, the probability is high that
A) in the long run profits will be zero
B) the industry is oligopolistic
C) the market is highly competitive
D) sales are quite high
E) the industry wherein the firm operates has a low four-firm concentration ratio

Question

Quizplus · Accepted Answer

A firm with significant market power, such as over 40 percent market share, is likely operating in an oligopolistic industry where a few firms dominate the market.

If a Firm Has Significant Market Power, Say, Over 40