As the number of firms in an oligopoly increases,
A)each seller becomes more concerned about its impact on the market price.
B)the output effect decreases.
C)the total quantity of output produced by firms in the market gets closer to the socially efficient quantity.
D)the oligopoly has more market power and firms earn a greater profit.

Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly increases, the market becomes more competitive, and the total quantity of output produced by firms in the market approaches the socially efficient quantity, similar to what would occur in a competitive market.

As the Number of Firms in an Oligopoly Increases