Oligopolies would like to act like a
A)duopoly, but self-interest often drives them closer to the perfectly competitive outcome.
B)competitive firm, but self-interest often drives them closer to the duopoly outcome.
C)monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly.
D)monopoly, but self-interest often drives them closer to the perfectly competitive outcome.

Question

Quizplus · Accepted Answer

Oligopolies would prefer to act like a monopoly to maximize profits by setting higher prices and reducing output. However, self-interest and competition among firms often lead them to outcomes closer to perfect competition, with lower prices and higher output.

Oligopolies Would Like to Act Like a