When an oligopoly grows very large, the:
A)output effect disappears
B)income effect disappears
C)price effect disappears
D)homogeneous product effect disappears

Question

Quizplus · Accepted Answer

When an oligopoly becomes very large, the price effect disappears, as firms may no longer have the ability to influence market prices due to increased competition and market saturation. However, the output effect, income effect, and homogeneous product effect may still be present to varying degrees.

When an Oligopoly Grows Very Large, The