Use the following table to answer the question : Table 15-1: shows the marginal cost [MC],marginal revenue [FH],and demand [FG] curves for a monopolist who faces constant costs.
Figure 15-1
-Refer to Figure 15-1.What is most likely to happen if the market is oligopolistic as compared to a monopolistic market structure?
A)The deadweight loss in the market will be greater.
B)The equilibrium output will be lower.
C)The equilibrium price in the market will be lower.
D)The price and output will remain unchanged.

Question

Use the following table to answer the question : Table 15-1: shows the marginal cost [MC],marginal revenue [FH],and demand [FG] curves for a monopolist who faces constant costs.
Figure 15-1 
-Refer to Figure 15-1.What is most likely to happen if the market is oligopolistic as compared to a monopolistic market structure?
A)The deadweight loss in the market will be greater. 
B)The equilibrium output will be lower. 
C)The equilibrium price in the market will be lower. 
D)The price and output will remain unchanged.

Quizplus · Accepted Answer

In an oligopolistic market, firms are more likely to compete with each other than in a monopolistic market, leading to lower prices and potentially higher output compared to a monopoly.

Use the Following Table to Answer the Question : Table