contestada

As the number of sellers in an oligopoly becomes very large, a. the price effect is magnified. b. the quantity of output approaches the socially efficient quantity. c. the price approaches the monopoly price. d. the quantity of output approaches the monopoly quantity.

Respuesta :

As the number of sellers in an oligopoly becomes very large, the quantity of output approaches the socially efficient quantity.

An Oligopoly is when there are few large firms operating in an industry.  

Characteristics of an oligopoly:

  1. Firms set the price for their product
  2. Products are differentiated
  3. The demand curve is downward sloping
  4. There is a high barrier to entry and exit of firms into the industry.

As the number of firms increase in an oligopoly, the quantity and price approaches what would exist in a perfect competition. As the number of firms in an oligopoly decreases, the price and quantity produces approaches that would be exist in a monopoly.

To learn more about oligopolies, please check: https://brainly.com/question/14136347

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