When an oligopoly grows very large,the
A) output effect disappears.
B) price effect disappears.
C) output effect equals the price effect.
D) price of the product greatly exceeds marginal cost.

Question

Quizplus · Accepted Answer

As an oligopoly grows very large, it starts to resemble a competitive market, where firms are price takers, and the price effect diminishes because individual firms have less influence over the market price.

When an Oligopoly Grows Very Large,the