Question

QUESTION 16

An oligopoly firm that will earn long-run economic profit.
O a. enjoys huge brand loyalty
o b. charges a low price for its product
C. spends less on advertisements
d. incurs a high cost to achieve the minimum efficient scale
e. charges a higher price for its product

Answer 1

E. CHARGES A HIGHER PRICE FOR ITS PRODUCT

Because of less substitution available and barriers to entry.