Oligopolies can end up looking like competitive markets if the number of firms is
A)large and they all cooperate.
B)large and they do not cooperate.
C)small and they all cooperate.
D)small and they do not cooperate.

Question

Quizplus · Accepted Answer

If the number of firms in an oligopoly is large and they do not cooperate, they will act in their own self-interest to maximize profits and will end up behaving similarly to firms in a competitive market. This is because no single firm has enough market power to control prices or dominate the market. Therefore, there will be increased competition and lower profit margins, resulting in a market that looks competitive.

Oligopolies Can End Up Looking Like Competitive Markets If the Number