The more firms an oligopoly has,
A)the more likely it is to earn monopoly profits.
B)the higher the price of the product.
C)the farther the equilibrium quantity will be from the socially efficient quantity.
D)the more likely the firms will charge a price close to the perfectly competitive price.

Question

Quizplus · Accepted Answer

As the number of firms in an oligopoly increases, the market becomes more competitive, leading prices to approach those found in a perfectly competitive market.

The More Firms an Oligopoly Has