When there are barriers to entry,a profit-maximizing oligopoly firm already in the industry can charge any price it wants,even in the long run.

Question

Quizplus · Accepted Answer

While barriers to entry can limit competition and allow firms to maintain higher prices and profits, oligopoly firms cannot charge any price they want due to the presence of other competitors in the market and potential competitive pressures, including the threat of new entrants if profits become excessively high.

When There Are Barriers to Entry,a Profit-Maximizing Oligopoly Firm Already