Asked by Alyssa Currie on Jul 23, 2024
Verified
Whether an oligopoly consists of 3 firms or 10 firms, the level of output likely will be the same.
Oligopoly
A market structure characterized by a small number of firms controlling a majority of the market share, leading to limited competition.
Level of Output
Refers to the total quantity of a good or service produced by a firm or economy at a given time.
- Identify the impact of the firm quantity within an oligopoly on the outcomes of the market.
Verified Answer
ML
Maddie LivvixJul 23, 2024
Final Answer :
False
Explanation :
In an oligopoly, the number of firms significantly affects market behavior and outcomes, including the level of output. With more firms, competition tends to increase, potentially leading to higher output levels compared to an oligopoly with fewer firms.
Learning Objectives
- Identify the impact of the firm quantity within an oligopoly on the outcomes of the market.