Suppose an oligopoly is composed of four firms. One firm has a 50% market share; another firm, 35%; another, 10%; and the fourth, 5%. It will be easier for this industry to engage in tacit collusion than for an oligopoly each of whose four firms has 25% of the market.

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The Answer of Suppose an oligopoly is composed of four firms. One firm has a 50% market share; another firm, 35%; another, 10%; and the fourth, 5%. It will be easier for this industry to engage in tacit collusion than for an oligopoly each of whose four firms has 25% of the market.

Suppose an Oligopoly Is Composed of Four Firms