What happens as the number of sellers in an oligopoly rises?
-
-
-
-
Correct answer B. The price in the market moves closer to marginal cost
Explanation
With more sellers, each firm's output decision has less effect on price, so the market behaves more competitively and price approaches marginal cost.
Answer checked · How we write and check questions
Tip: press A, B, C or D to answer, and N for the next question.
Advertisement
Discussion