As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
Correct answer: B. a competitive market
- A. monopoly
- B. a competitive market
- C. monopolistic competition
- D. a collusion solution
Explanation
As more sellers enter, each firm's influence over market price falls and the market outcome moves closer to perfect competition. A large number of sellers makes coordinated oligopoly behaviour harder.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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