Consider the following characteristics:
a.a market structure with barriers to entry
b.demand curves that are easily identified
c.firm cannot make zero profits in the long run
d.firm can reap long run profits.
The characteristics in the list above shared by an oligopolist and a monopolist are
A)a, b, c, and d
B)a, b, and d
C)a, c, and d
D)a and d

Question

Consider the following characteristics: 
a.a market structure with barriers to entry
b.demand curves that are easily identified
c.firm cannot make zero profits in the long run
d.firm can reap long run profits.
The characteristics in the list above shared by an oligopolist and a monopolist are
A)a, b, c, and d
B)a, b, and d
C)a, c, and d
D)a and d

Quizplus · Accepted Answer

Both oligopolists and monopolists operate in markets with barriers to entry (a) and can reap long-run profits (d) due to these barriers and their market power.

Consider the Following Characteristics