What impact would easy entry have on the profitability of oligopolies?
When market entry is easy, newcomers will be attracted to the industry whenever excess profits are available. This is likely to lead to the breakdown of tacit agreements of existing firms to hold prices at the current levels. Existing firms may lower their prices to reduce or eliminate the incentives for new firms to enter the market, negatively impacting profitability.
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Other things equal, if the price of a key resource used to produce product X falls, the:
A. product supply curve of X will shift to the right. B. product demand curve of X will shift to the right. C. product supply curve of X will shift to the left. D. product supply curve of X will not shift.
Marginally attached workers
A. are not looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. B. don't have jobs and are pessimistic about their chances of finding a suitable job. C. have a bad attitude towards work. D. are working part-time, but they want full-time work.