As the Number of Firms in an Oligopoly Increases,the Quantity

question 221

Multiple Choice

As the number of firms in an oligopoly increases,the quantity of output produced (i) decreases.
(ii) increases.
(iii) eventually approaches the socially-optimal level.

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

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Definitions:

Indicator Variable

A variable used in statistics that takes the value 1 to indicate the presence of a certain condition and 0 to indicate its absence.

Nominal Variables

Categorical variables that have two or more categories without having a natural order or rank.

College Major

The specialized area of study or field chosen by a college or university student to focus their academic coursework and degrees.

Nominal

A level of measurement that categorizes data but does not rank them.