As the number of firms in an oligopolistic market increases, ________
A) prices tend to decline toward marginal cost
B) prices tend to rise above marginal cost
C) the market demand for the good tends to fall
D) profits earned by firms tend to rise
A
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If the diagram were relevant to an individual firm, we could conclude that the firm is:
A. a pure competitor in the hire of labor.
B. a monopsonist in the hire of labor.
C. selling its product in an imperfectly competitive market.
D. selling its product in a purely competitive market.
In 2009, Congress passed a bill that involved government spending increases and tax cuts with the purpose of stimulating the U.S. economy. This policy is an example of
A. an automatic stabilizer. B. contractionary fiscal policy. C. expansionary monetary policy. D. expansionary fiscal policy.