The process of "creative destruction" in an oligopolistic industry suggests that
◦ profits are driven to zero by the entry of new firms.
◦ there are no costs of exit in oligopoly.
◦ firms can enter and leave without incurring any sunk costs of entry.
◦ no firm can survive in the long run.
◦ the prospect of keeping the resulting profits provides an incentive for firms to innovate.