As the number of firms in an oligopoly grows larger,what does an oligopolistic market look more and more like
A)a competitive market
B)a monopoly
C)a duopoly
D)a monopolistically competitive market

Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly grows larger, the market looks more and more like a competitive market, where firms compete on price and other factors to gain market share. The presence of more firms reduces each firm's market power and makes it more difficult to collude or form cartels. Therefore, the market becomes more competitive, with firms trying to differentiate their products and services, improve quality, and lower prices to attract customers. However, oligopolies still have some characteristics of monopolies, such as barriers to entry and interdependence among firms.

As the Number of Firms in an Oligopoly Grows Larger,what