As the number of sellers in an oligopoly grows, an oligopolistic market looks more and more like a competitive market.

Question

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As the number of sellers in an oligopoly increases, each firm has a smaller market share and less market power. This leads to more competition and pricing that approaches the level of a perfectly competitive market. However, there are still barriers to entry and the potential for collusion among the firms, which distinguish it from a truly competitive market.

As the Number of Sellers in an Oligopoly Grows, an Oligopolistic