Even If Entry Is Easy,oligopolists Possess Sufficient Market Power So

question 58

True/False

Even if entry is easy,oligopolists possess sufficient market power so that profits are assured in the long run.

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Definitions:

Demand Shifts

Occur when external factors lead to a change in the amount of a product or service that consumers are willing and able to buy at a given price, resulting in the demand curve moving rightward or leftward.

New Equilibrium

The point at which market supply and demand balance each other, and, as a result, prices become stable following a disturbance.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, reaching a state of balance where there are no surplus or shortage.