If an oligopolist incurs losses in the short run, then in the long run ____________
A. it will stay in business B. it will go out of business C. it will break even D. it will merge with other firms
Correct Answer: D
Explanation
An oligopolist who incurs losses in the short run may join other firms in the market, so that they can influence the price together, create barriers to country and increase their profits as they operate as a monopolist. However. an oligopolist which cannot merge with other firms quit the business in the long run.
