The larger the number of firms in an oligopoly, the ________ the price and the ________ the output of the industry.
A)lower, greater
B)higher, lesser
C)higher, greater
D)lower, lesser

Question

Quizplus · Accepted Answer

In an oligopoly, as the number of firms increases, competition among them also increases. This tends to lower the price of goods or services due to competitive pressures. Additionally, with more firms, the total output of the industry is likely to increase as each firm contributes to the overall production.

The Larger the Number of Firms in an Oligopoly, the ________