The Chamberlin oligopoly provides a foundation for ________and differs from the Cournot oligopoly as it assumes firms ________to each other's actions.

Question

Quizplus · Accepted Answer

The Chamberlin oligopoly emphasizes tacit collusion among firms, meaning they are aware of each other's actions and adjust their own output accordingly. This differs from the Cournot oligopoly, which assumes firms act independently and do not respond to each other's actions. Therefore, the best choice is D, which reflects the Chamberlin oligopoly assumptions.

The Chamberlin Oligopoly Provides a Foundation for ________And Differs from the Cournot