The conclusion that firms in oligopoly always produce where price exceeds marginal cost is true for all models of oligopoly except the
A) collusive oligopoly model.
B) price-leadership model.
C) Cournot model.
D) contestable market model.

Question

Quizplus · Accepted Answer

In the contestable market model, firms can enter and exit the market freely, leading to prices that can be driven down to the level of marginal cost, unlike other oligopoly models where barriers to entry maintain prices above marginal cost.

The Conclusion That Firms in Oligopoly Always Produce Where Price