be forced out of business. Others, including Galbraith (1974), argue that oligopolies are
better because the large firms in the industry have the resources to finance research and
development and are better able to bear the risks involved in R&D.6 They will also be
more motivated to innovate than firms in perfect competition, since they will reap the
benefits of innovation in the form of abnormal profits. As there is less price competition
in an oligopolistic market, there will be more reliance on other forms of competition,
including innovation.