In an oligopoly industry, price:
A) will be lower than the competitive price, due to cost savings.
B) will exceed the monopoly price, due to the destructiveness of competitive forces.
C) cannot be predicted exactly, because it is likely to lie between the competitive and monopoly prices.
D) none of these.

Question

Quizplus · Accepted Answer

In an oligopoly industry, price cannot be predicted with certainty because it is likely to fall between the competitive and monopoly prices. This is because there are only a few firms in the industry, which gives them some control over prices, but there is also some level of competition among the firms which limits their ability to raise prices too high. Therefore, the price is likely to be somewhere in between the competitive and monopoly prices.

In an Oligopoly Industry, Price