Those Who Contend That Oligopolists Are Less Likely Than More

question 53

Multiple Choice

Those who contend that oligopolists are less likely than more competitive firms to engage in R&D say that

• A)oligopolists have little incentive to introduce costly new technology and produce new products when they currently are earning large economic profit using existing technology and selling existing products.
• B)the undistributed profits of oligopolists give them a source of readily available, relatively low-cost funds for financing R&D.
• C)entry barriers enable oligopolists to sustain the profits they gain from innovation.
• D)the large size of oligopolists' R&D departments allows them to use very specialized, expensive R&D equipment and employ teams of specialized researchers.

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Definitions:

Corporate Veil

A legal concept that separates the actions and liabilities of a corporation from those of its shareholders or directors.

Corporate Property

Assets owned by a corporation, including real estate, intellectual property, and physical goods.

Shareholders

Individuals or entities that own shares in a corporation, reflecting a proportion of ownership in the company.

Corporate

Pertaining to a corporation, which is a legal entity recognized by law as separate from its owners and having its own rights, privileges, and liabilities.