In the long run, an oligopoly
A) will produce less than a monopoly.
B) may be able to earn positive economic profits.
C) will always produce in the range of decreasing returns to scale.
D) will produce on the portion of the demand curve where demand is price-inelastic.

Question

Quizplus · Accepted Answer

An oligopoly may be able to earn positive economic profits in the long run as they have some market power to set prices above the marginal cost. However, the exact outcome may depend on various factors such as the degree of competition, barriers to entry, and demand elasticity. The other options are not necessarily true for all oligopolies.

In the Long Run, an Oligopoly