In an oligopolistic market, prices will tend to be closer to the competitive price:
A) the more government regulation there is in the market.
B) when the product is more distinguishable from its competitors.
C) the larger the size of the cartel.
D) the greater the number of sales.

Question

Quizplus · Accepted Answer

In an oligopolistic market, if the size of the cartel is larger, it means more firms are colluding to set prices, which can lead to prices being closer to the competitive price due to increased market control and reduced competition.

In an Oligopolistic Market, Prices Will Tend to Be Closer