As the number of sellers in an oligopoly becomes very large,
A)the quantity of output approaches the socially efficient quantity.
B)the price approaches marginal cost.
C)the price effect is diminished.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

As the number of sellers in an oligopoly increases, the market becomes more competitive, leading to outcomes similar to those in a perfectly competitive market, where the quantity approaches the socially efficient level, price approaches marginal cost, and the price effect diminishes.

As the Number of Sellers in an Oligopoly Becomes Very