Why might oligopolistic firms have more of an incentive to innovate than monopolists?

Question

A. Oligopolistic firms have more to gain than monopolists by differentiating their products from rivals'.

B. Oligopolistic firms have more resources to devote to R&D than monopolists do.

C. Oligopolistic firms face more competition than monopolists do.

Answer 1

C is correct.

A is partially correct.

B is doubtfully correct, not to be generalized.