As the number of firms in an oligopoly market
A)decreases, the price charged by firms likely decreases.
B)decreases, the market approaches the competitive market outcome.
C)increases, the market approaches the competitive market outcome.
D)increases, the market approaches the monopoly outcome.

Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly increases, the market becomes more competitive, resembling a competitive market outcome where prices tend to be lower and closer to marginal cost.

As the Number of Firms in an Oligopoly Market