How might firms still have positive economic profit

Reference no: EM131919253

Problem

1. Explain why an oligopolist (with few competitors) pays more attention to what its competitors are doing than a producer in a competitive market (with many competitors) does.

2. If a market has few barriers to entry and many firms, how might firms still have positive economic profit? Describe a strategy a firm in this type of market might use to maintain economic profits.

Reference no: EM131919253

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