Economists Who Contend That Oligopolists Have a Strong Incentive to Engage

question 193

Multiple Choice

Economists who contend that oligopolists have a strong incentive to engage in R&D say that

• A) the undistributed profits of oligopolists give them a source of readily available, relatively low-cost funds for financing R&D.
• B) entry barriers enable oligopolists to sustain the profit they gain from innovation.
• C) the large size of oligopolists' R&D departments allows them to use specialized, expensive R&D equipment and employ teams of specialized researchers.
• D) all of the other answers are true.

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