As the Number of Firms in an Oligopoly Grows Larger

question 42

Multiple Choice

As the number of firms in an oligopoly grows larger, what happens to the quantity produced?
(i) it approaches the socially optimal level
(ii) it increases
(iii) it decreases

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(ii) only

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Definitions:

Flake Tools

Prehistoric stone tools created by chipping or flaking off pieces from a larger stone, used by early humans for cutting and scraping.

Homo Erectus

An extinct species of early human that lived throughout Africa, Asia, and Europe between approximately 1.9 million and 143,000 years ago, known for its upright posture.

Toolmakers

Beings (often humans) who create, modify, or use tools, enhancing their ability to interact with and manipulate their environment.