The equilibrium quantity in markets characterized by oligopoly is
A)higher than in monopoly markets and higher than in perfectly competitive markets.
B)higher than in monopoly markets and lower than in perfectly competitive markets.
C)lower than in monopoly markets and higher than in perfectly competitive markets.
D)lower than in monopoly markets and lower than in perfectly competitive markets.

Question

Quizplus · Accepted Answer

Oligopolistic markets tend to have a higher equilibrium quantity than monopoly markets because oligopolies have more than one firm competing, unlike a monopoly with only one firm. However, the equilibrium quantity is lower than in perfectly competitive markets, where a large number of firms lead to more production and closer to the socially optimal output level.

The Equilibrium Quantity in Markets Characterized by Oligopoly Is