As the number of firms in an oligopolistic market grows larger, the price approaches:
A)the monopoly price
B)average cost
C)marginal revenue
D)marginal cost

Question

Quizplus · Accepted Answer

As the number of firms in an oligopolistic market increases, the market becomes more competitive, and the price tends to approach the marginal cost, similar to a perfectly competitive market.

As the Number of Firms in an Oligopolistic Market Grows