The economic inefficiency in an oligopoly may be reduced by the following, except

Question

Quizplus · Accepted Answer

Aggressive advertising by rivals in an oligopoly often leads to non-price competition, which can increase costs without necessarily improving efficiency or consumer welfare. It may not reduce economic inefficiency but rather maintain or even increase it by focusing on brand differentiation rather than on price competition or efficiency improvements.

The Economic Inefficiency in an Oligopoly May Be Reduced by the Following