Which of the following is a difference between perfect competition and an oligopoly?

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms earn zero economic profit in the long run due to free entry and exit of firms. However, in an oligopoly, there are barriers to entry that prevent new firms from entering the market, allowing existing firms to earn economic profit in the long run. Thus, this is a key difference between the two market structures. The other choices are not accurate, as firms in an oligopoly tend to charge higher prices than firms in a perfectly competitive market, face downward-sloping demand curves, and have high barriers to entry. Additionally, while there are only a few firms in an oligopoly, the number of firms in a perfectly competitive market is technically infinite.

Which of the Following Is a Difference Between Perfect Competition