As the number of firms in an oligopoly increases, the
a. price approaches marginal cost, and the quantity approaches the socially efficient level.
b. price and quantity approach the monopoly levels.
c. price effect exceeds the output effect.
d. individual firms' profits increase.
a
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If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost. B) the price of the resource equals its opportunity cost. C) the price of the resource is above its opportunity cost. D) the resource has no opportunity cost.
Refer to the below graph. If the price increases from P1 to P2, then the total revenue will gain area:
A. B + E, but it will lose area H + I + J
B. C + F + H, but it will lose area J
C. E + F + G, but it will lose area J
D. A + B + C, but it will lose area G + I + J