Oligopolists are aware that increases in the quantity of output they produce will do which of the following
A)reduce the price of their product, and in this respect they are like monopolists
B)reduce the price of their product, and in this respect they are like competitive firms
C)increase the price of their product, and in this respect they are like monopolists
D)increase the price of their product, and in this respect they are like competitive firms

Question

Quizplus · Accepted Answer

Oligopolists, like monopolists, recognize that increasing output can lead to a decrease in the price of their product due to the downward-sloping demand curve they face.

Oligopolists Are Aware That Increases in the Quantity of Output