As the number of sellers in an oligopoly becomes very large,
A)the quantity of output approaches the monopoly quantity.
B)the price approaches the monopoly price.
C)the price effect is magnified.
D)the quantity of output approaches the socially efficient quantity.

Question

Quizplus · Accepted Answer

In an oligopoly, as the number of sellers increases, the market becomes more competitive. This increased competition leads to more output being produced, moving the quantity of output closer to the socially efficient quantity, where marginal cost equals marginal benefit.

As the Number of Sellers in an Oligopoly Becomes Very