Asked by
Olivia Stone
on Nov 26, 2024
Verified
Two characteristics of oligopoly pricing that have frequently been observed are that
A) oligopolistic prices tend to be "sticky" or inflexible, and when the firms do change their prices, they tend to do so together.
B) oligopolistic firms' prices tend to fluctuate a lot, and these prices tend to move together with each other.
C) oligopolists tend to practice a lot of price discrimination, and there tends to be a wide variance in oligopoly pricing.
D) oligopolistic firms' prices tend to fluctuate a lot, and there tends to be a wide variance in oligopoly pricing.
Oligopoly Pricing
A market pricing strategy used in an oligopoly, where a few firms dominate the market and can significantly influence prices through competitive and collaborative dynamics.
Sticky
Describes prices or wages that are slow to adjust or change in response to changes in supply, demand, or the broader economic environment.
Price Discrimination
A pricing policy in which the same provider sells the same or nearly the same products or services at various prices across different markets.
- Determine the elements that contribute to the lack of price flexibility in oligopoly markets.
Verified Answer
AR
Learning Objectives
- Determine the elements that contribute to the lack of price flexibility in oligopoly markets.