As the Number of Firms in an Oligopoly Increases, the

question 248

Multiple Choice

As the number of firms in an oligopoly increases, the

• A)price approaches marginal cost, and the quantity approaches the socially efficient level.
• B)price and quantity approach the monopoly levels.
• C)price effect exceeds the output effect.
• D)individual firms' profits increase.

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Definitions:

Compounded Semi-annually

Interest calculation method where the invested sum earns interest twice a year, and this interest is added to the principal for the computation of future interest.

Semi-annual Deposits

Deposits that are made twice a year into a financial account.

Retirement Fund

Financial resources that have been saved or accumulated to support a person's living expenses after they cease working.

Compounded Annually

Interest calculation method where the profit earned is added to the principal annually, enhancing the subsequent year's earnings.