Nonprice competition, price leadership, and cartels are models in the ____ market structure(s).

Question

Quizplus · Accepted Answer

Nonprice competition, price leadership, and cartels are all strategies used by firms in the oligopoly market structure, where a small number of large firms dominate the market and have the ability to influence prices and output. In a perfectly competitive market, firms are price takers and have no market power, while in a monopolistically competitive market, firms have some degree of market power but there are still many small firms and no dominant players. In a monopoly, there is only one firm in the market, and it has complete market power. Therefore, the correct answer is C, oligopoly.

Nonprice Competition, Price Leadership, and Cartels Are Models in the ____