Oligopoly industry with differentiated products

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In an oligopoly industry with differentiated products, price ________.

Group of answer choices

typically increases as the number of firms increases

is unaffected by the number of firms in the industry

typically decreases as the number of firms increases

is always the same as the monopoly price

Scenario: Suppose there are only two firms in an industry, and their products are perfect substitutes for each other. Each firm had a fixed marginal cost of $5 and zero fixed cost of operation. The highest the consumers of this product are willing to pay for it is $10, and there are 200 consumers in this market.

Reference no: EM132484592

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