Asked by Furqaan Sayed on May 25, 2024

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Every oligopolist

A) is part of a cartel.
B) colludes openly.
C) can ignore the actions of her competitors.
D) takes into account the actions of her competitors.

Oligopolist

A market participant in an oligopoly, a market structure dominated by a small number of large firms, influencing pricing and competition.

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to limit competition.

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.

  • Understand the notion of market structure and its impact on the conduct of firms and market dynamics.
  • Analyze the competition within oligopolies and its consequences on the outcomes in the market.
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Charlotte ComanMay 25, 2024
Final Answer :
D
Explanation :
Oligopolists take into account the actions of their competitors in order to make strategic decisions about prices, output, and marketing. While some oligopolists may collude and form cartels to act as a single dominant firm in the market, this is not always the case. Therefore, A and B are incorrect. Similarly, oligopolists cannot ignore the actions of their competitors, as they are interdependent in the market. Therefore, C is also incorrect.