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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.
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