Which of the following activities are distinctive of oligopolies?
I.Collaboration in price setting.
II.Division of markets into spheres of influence.
III.Use of reciprocal buying agreements with purchasers.
IV.Avoidance of advertising.

Question

Quizplus · Accepted Answer

Oligopolies are characterized by a small number of firms that dominate the market, leading to behaviors such as collaboration in price setting, division of markets into spheres of influence, and the use of reciprocal buying agreements. These strategies help maintain their market positions and profits. Avoidance of advertising is not distinctive of oligopolies; in fact, oligopolies often engage in significant advertising to differentiate their products and compete within the market.

Which of the Following Activities Are Distinctive of Oligopolies