Limited access

Upgrade to access all content for this subject

All of the following describe reasons why prices tend to be stable in industries classified as oligopoly EXCEPT

A

firms in industries classified as oligopolies are price takers and so cannot individually change their prices.

B

in non-collusive oligopolies, a price decrease by one firm is generally copied by other firms in the industry.

C

mutual interdependence means that in a non-collusive oligopoly, raising prices generally leads to lower profits.

D

price leadership oligopolies change prices infrequently in order to make it easier for the firms to follow the lead firm.

E

reaching collusive price agreements can be complicated so firms are likely to maintain the agreed upon price for an extended period of time.

Select an assignment template