When an oligopolist chooses its output on its own to maximise its profit, how does that output compare with monopoly and competitive levels?
Correct answer C. More than the level produced by a monopoly and less than the level produced by a competitive market
Explanation
Acting independently, oligopolists together produce more than a monopolist would but less than a competitive industry, because each ignores the price effect on rivals.
Answer checked How we write and check questions
Discussion