Other things the same, in which case is the quantity produced the highest?
A)There is one firm.
B)There are two firms that successfully collude.
C)There are two firms in Nash equilibrium.
D)There are a very large number of firms.

Question

Quizplus · Accepted Answer

In a market with a very large number of firms, each firm is a price taker and their individual actions do not have a significant impact on the market price. This results in a situation where the firms collectively produce a higher quantity than in any of the other scenarios.

Other Things the Same, in Which Case Is the Quantity