Oligopolies would like to act like a:
A)monopoly but self-interest often drives them closer to duopoly
B)monopoly but self-interest often drives them closer to competition
C)duopoly but self-interest often drives them closer to competition
D)competitor but self-interest often drives them closer to duopoly

Question

Quizplus · Accepted Answer

Oligopolies, which are markets dominated by a small number of firms, would ideally like to act like a monopoly to maximize profits by setting higher prices. However, the self-interest of each firm in trying to capture a larger market share often leads to actions that drive the market closer to competitive behaviors, such as price cuts or increased marketing, which benefits consumers.

Oligopolies Would Like to Act Like A