As the Number of Firms in an Oligopoly Increases

question 475

Multiple Choice

As the number of firms in an oligopoly increases,

• A)each seller becomes more concerned about its impact on the market price.
• B)the output effect decreases.
• C)the total quantity of output produced by firms in the market gets closer to the socially efficient quantity.
• D)the oligopoly has more market power and firms earn a greater profit.

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Definitions:

Anterior

Before or in front of.

Pathophysiology

The study of how normal physiological processes are affected by disease, leading to the functional changes associated with health conditions.

Exocytosis

A process by which a cell transports secretory products through the cytoplasm to the plasma membrane and then into the extracellular environment.

Recessive Gene

A type of gene that is not expressed in the phenotype unless it is present on both chromosomes of a pair, overshadowed by dominant genes when in combination.