As the number of firms in an oligopoly increases, the magnitude of the price effect increases.

Name: As the number of firms in an oligopoly increases, the magnitude of the price effect increases.
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Question

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In an oligopoly, as the number of firms increases, the market becomes more competitive, leading to a decrease in the magnitude of the price effect because each firm has less market power to influence prices significantly.

As the Number of Firms in an Oligopoly Increases, the Magnitude