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.

Which of the characteristics in the list above is shared by an oligopolist and a monopolist?

Select one:

a. a and d

b. a, b, c, and d

c. a, c, and d

d. a, b, and d

Answer 1

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.

Which of the characteristics in the list above is shared by an oligopolist and a monopolist?

Select one:

a. a and d

b. a, b, c, and d

c. a, c, and d

d. a, b, and d

a. a and d

a.   a market structure with barriers to entry

d.   firm can reap long run profits

A monopolist and oligopolist have barriers to enter into the market and both the markets in the long run gets economic profits.