Asked by Naoise Kiernan on May 09, 2024
Verified
If three or four homogeneous oligopolists collude,the resulting price and production outcomes will be similar to those of pure monopoly.
Homogeneous Oligopolists
Firms within an oligopoly market structure that offer products or services that are very similar, making them close substitutes for each other.
Pure Monopoly
A market structure where a single firm controls the entire market for a product or service, with no close substitutes.
- Cement your comprehension of the diverse market typologies, such as monopoly, oligopoly, monopolistic competition, and unblemished competition.
- Identify traits and outcomes of collusive and non-collusive oligopolies.
Verified Answer
AS
Abhinav SharmaMay 11, 2024
Final Answer :
True
Explanation :
When oligopolists collude, they can act like a single monopolist, controlling production levels and prices in the market. This results in a similar outcome to that of a pure monopoly where a single firm controls the market.
Learning Objectives
- Cement your comprehension of the diverse market typologies, such as monopoly, oligopoly, monopolistic competition, and unblemished competition.
- Identify traits and outcomes of collusive and non-collusive oligopolies.
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