2445EconomicsMedium
As the number of sellers in an oligopoly increases?
Aoutput in the market tends to fall because each firm must cut back on production
BThe price in the market moves closer to marginal cost
Ccollusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
Dthe price in the market moves further from marginal cost
Correct answer
B. The price in the market moves closer to marginal cost
Explanation
The correct answer is The price in the market moves closer to marginal cost.