The number of firms that control the supply of a product may affect the strength of competition.

Question

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The number of firms that control the supply of a product can affect the level of competition in the marketplace. If there are only a few firms that control the supply of a product, they may be able to set prices higher and limit competition. However, if there are many firms that offer the same product, then competition will be stronger, which can lead to lower prices and better quality for consumers.

The Number of Firms That Control the Supply of a Product