When oligopolies operate like firms in perfect competition,the firms produce at the point where the

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When oligopolies operate like firms in perfect competition, they produce at the point where marginal cost equals price, just like in perfect competition. This is because in both cases, firms aim to maximize profits by producing where marginal revenue equals marginal cost. Choosing a higher output level where price exceeds marginal cost would mean lower profits, while choosing a lower output level where price is less than marginal cost would not be optimal as the firm would not be maximizing profits. Thus, producing where marginal cost equals price is the best choice for oligopolies operating like firms in perfect competition.

When Oligopolies Operate Like Firms in Perfect Competition,the Firms Produce