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

question 150

Multiple Choice

As the number of firms in an oligopoly increases, the magnitude of the

• A)output effect increases.
• B)output effect decreases.
• C)price effect increases.
• D)price effect decreases.

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Definitions:

OPEC

The Organization of Petroleum Exporting Countries, an intergovernmental body aiming to coordinate and unify petroleum policies among member countries.

Tax

A required fiscal imposition or alternative form of charge levied on taxpayers by a governmental institution for the purpose of funding government activities and assorted public expenses.

Buyers

Buyers are individuals or entities that purchase goods or services in the marketplace.

Sellers

Entities or people presenting items or services to be sold within the market.