Asked by
Arturo Rocha
on Dec 12, 2024
Verified
Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists together,
A) they are unable to maintain the same degree of monopoly power achieved by a monopolist.
B) each firm's profit always ends up being zero.
C) competitive pressures are absent from the market.
D) it will be easier to maintain collusive agreements.
Oligopolists
Firms or individuals that control the market for a particular good or service in an oligopoly, where a small number of entities dominate.
Monopoly Power
The ability of a single seller to control market prices and total market output.
Collective Profit
The total profit earned by a group of entities or an industry, considering all its members.
- Elucidate the rewards and penalties that influence businesses and regulators in both monopoly and oligopoly market environments.
Verified Answer
AM
Learning Objectives
- Elucidate the rewards and penalties that influence businesses and regulators in both monopoly and oligopoly market environments.