The Process of "Creative Destruction" in an Oligopolistic Industry Suggests

question 51

Multiple Choice

The process of "creative destruction" in an oligopolistic industry suggests that

• A) the prospect of keeping the resulting profits provides an incentive for firms to innovate.
• B) there are no costs of exit in oligopoly.
• C) profits are driven to zero by the entry of new firms.
• D) no firm can survive in the long run.
• E) firms can enter and leave without incurring any sunk costs of entry.

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Definitions:

Social Media Sites

Online platforms where individuals and organizations can create and share content or participate in social networking, such as Facebook, Twitter, and Instagram.

MOOCs

Stands for Massive Open Online Courses, free online courses available for anyone to enroll that offer a wide variety of subjects.

Hospital Billing Clerks

Administrative professionals responsible for preparing and sending invoices for hospital services, as well as tracking payments.

Job Posting Site

An online platform where employers advertise job openings and potential employees can apply for those positions.