If the number of firms in an oligopoly grows smaller, an oligopolistic market looks less and less like:
A)a monopoly
B)a duopoly
C)a competitive market
D)none of the above

Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly grows smaller, the market becomes less competitive and resembles more and more a monopoly or a duopoly. Therefore, option A and B are not the correct options. Option C is the best choice because it represents a more competitive market, which is not the case in an oligopoly with fewer firms.

If the Number of Firms in an Oligopoly Grows Smaller