Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 17 - Part V - Oligopoly - Questions for Review - Page 366: 2


The quantity of the oligopoly is higher than that of the monopoly. The price of the oligopoly is lower than that of the monopoly.

Work Step by Step

Even though it would be most beneficial for firms in an oligopoly to produce at the same price/output as a monopoly, this is typically unlikely to happen because oligopolists tend to pursue self-interest. Each individual firm will try to capture a larger share of the market, which ultimately increases the total production and decreases the price.
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