The theory of oligopoly provides a reason as to why
A) perfect competition is not a useful object of study.
B) price is less than marginal cost for many firms.
C) all countries can benefit from free trade among nations.
D) firms do not want to capture larger shares of their markets.

Question

Quizplus · Accepted Answer

Oligopoly theory explains how firms in a market with few competitors can influence prices and output, which can lead to mutual benefits from trade due to increased market access and competition.

The Theory of Oligopoly Provides a Reason as to Why