In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm.

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It is generally assumed that the price charged by the oligopolistic firm will be higher than the price charged by the perfectly competitive firm, as oligopolistic firms have some degree of market power and can influence prices through strategic behavior and collusion with other firms in the industry. In contrast, perfectly competitive firms have no market power and must accept prevailing market prices.

In Comparing an Oligopolistic Firm to a Perfectly Competitive Firm