As the Number of Firms in an Oligopoly Increases, the

question 248

Multiple Choice

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.

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Definitions:

Sampling Bias

A systematic error that occurs in research when the sample is not representative of the population from which it's drawn, potentially skewing outcomes.

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