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The ability of a good or service to satisfy wants is Utility or Utility maximization? also,...

The ability of a good or service to satisfy wants is

Utility or Utility maximization?

also, if more firms enter an Oligopoly, will it become Monopolistic or something else?

Business   Economics   
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Answer #1

The ability of a good or service to satisfy wants is called utility. Whereas utility maximization means that the consumer allocated his income in such a way that the last dollar spent on each product yields the same amount of extra marginal utility.

It is difficult in the oligopoly market for firms to enter as there are barriers in entry and mostly oligopoly operate in cartels. But still, if more number of firms are able to enter the oligopoly then it will become monopolistic market because in a monopolistic market the number of sellers is more than the oligopoly and the products are not perfect subsitutes.

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