The Process of "Creative Destruction" in an Oligopolistic Industry Suggests

Multiple Choice

The process of "creative destruction" in an oligopolistic industry suggests that

A) profits are driven to zero by the entry of new firms.
B) no firm can survive in the long run.
C) firms can enter and leave without incurring any sunk costs of entry.
D) there are no costs of exit in oligopoly.
E) the prospect of keeping the resulting profits provides an incentive for firms to innovate.