As the number of firms in an oligopoly increases, the price approaches
A)zero.
B)marginal cost.
C)infinity.
D)the monopoly price.

Name: As the number of firms in an oligopoly increases, the price approaches A)zero. B)marginal cost. C)infinity. D)the monopoly price.
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Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly increases, the market becomes more competitive, and the price tends to approach the marginal cost, similar to a perfectly competitive market.

As the Number of Firms in an Oligopoly Increases, the Price