Asked by ayshan tarzelo on May 04, 2024
Verified
All other things equal,the larger the number of firms in an oligopolistic industry,the more difficult it is for those firms to collude.
Oligopolistic Industry
A market structure characterized by a small number of large firms that dominate the market, often leading to limited competition and higher prices.
- Ascertain the properties and effects related to collusive and non-collusive oligopolies.
- Clarify the concept of game theory and illustrate its relevance in the context of oligopoly markets.
Verified Answer
IR
Isaac RodgersMay 09, 2024
Final Answer :
True
Explanation :
With more firms in the industry, it becomes harder for all of them to coordinate and agree on a common strategy, making collusion less likely. Each firm has less market power and their actions have less impact on the overall market.
Learning Objectives
- Ascertain the properties and effects related to collusive and non-collusive oligopolies.
- Clarify the concept of game theory and illustrate its relevance in the context of oligopoly markets.