MCQOPTIONS
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| 1. |
As the number of sellers in an oligopoly increases ? |
| A. | output in the market tends to fall because each firm must cut back on production |
| B. | the price in the market moves further from marginal cost |
| C. | collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects |
| D. | The price in the market moves closer to marginal cost |
| Answer» E. | |