If a market changes from oligopoly to perfect competition,then as a result
A)Output should increase in the long run.
B)Fewer resources will be allocated to the market.
C)Profitability should rise in the long run.
D)Prices should rise in the long run.

Question

Quizplus · Accepted Answer

In a perfect competition market, there are many firms competing with each other, which leads to lower prices and higher output. This is different from an oligopoly where a small number of firms dominate the market and may limit output to keep prices high. Therefore, if a market changes from oligopoly to perfect competition, output should increase in the long run.

If a Market Changes from Oligopoly to Perfect Competition,then as a Result