In a market characterized by oligopoly, which of the following best describes economic profit?

In a market with oligopoly, only a few companies dominate the industry, which means they have some control over prices. Economic profit occurs when a company makes more money than what it costs to produce its goods or services, including all costs like labor, materials, and opportunity costs. In an oligopoly, firms can earn economic profits in the short run due to limited competition and the ability to set higher prices. For example, if two major phone companies agree to keep their prices high, they can both make a profit above their costs. However, in the long run, new companies may enter the market, increasing competition and reducing those economic profits.