Asked by Parker Murdie on Jun 09, 2024
Verified
Both collusive and noncollusive oligopoly models suggest that price changes will be relatively infrequent in these types of industries.
Collusive Oligopoly
A market condition where a small number of firms illegally agree to set prices or output levels to maximize collective profits.
Noncollusive Oligopoly
A market structure where a few firms dominate but do not explicitly coordinate their pricing and output decisions, leading to competitive but interdependent market outcomes.
- Understand the aspects and repercussions of operating within collusive and non-collusive oligopolies.
- Assess the role of market share and competition in determining pricing and profit-making tactics.
Verified Answer
GL
Gabriella LucarelliJun 11, 2024
Final Answer :
True
Explanation :
Both collusive and noncollusive oligopolies have interdependent firms who must consider the reactions of their competitors when making pricing decisions. This can lead to a stable price environment with infrequent changes.
Learning Objectives
- Understand the aspects and repercussions of operating within collusive and non-collusive oligopolies.
- Assess the role of market share and competition in determining pricing and profit-making tactics.