As the number of firms in an oligopoly increases,the quantity of output produced (i) decreases.
(ii) increases.
(iii) eventually approaches the socially-optimal level.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(ii) only

Question

As the number of firms in an oligopoly increases,the quantity of output produced (i)	decreases.
(ii)	increases.
(iii)	eventually approaches the socially-optimal level.
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(ii) only

Quizplus · Accepted Answer

As the number of firms in an oligopoly increases, competition among them tends to increase, leading to a higher quantity of output. Eventually, as the market becomes more competitive, the output can approach the socially-optimal level, similar to a competitive market.

As the Number of Firms in an Oligopoly Increases,the Quantity