As the Number of Sellers in an Oligopoly Increases

question 36

Multiple Choice

As the number of sellers in an oligopoly increases,

• A) output in the market tends to fall because each firm must cut back on production.
• B) the price in the market moves further from marginal cost.
• C) collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects.
• D) the price in the market moves closer to marginal cost.

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Definitions:

Psychoneuroimmunology

The study of how psychological processes, the nervous system, and the immune system interact with each other.

Immune System

A biological system consisting of specific cells and proteins that defend the body against infection, disease, and foreign substances.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension and may be a factor in disease causation; a state of mental or emotional strain resulting from adverse or demanding circumstances.

Illness

A state of being in poor health, typically due to disease, infection, or other medical conditions affecting the body or mind.