In an oligopoly industry, price:
A) will be lower than the competitive price, due to cost savings.
B) will exceed the monopoly price, due to the destructiveness of competitive forces.
C) cannot be predicted exactly, because it is likely to lie between the competitive and monopoly prices.
D) none of the above.

Question

Quizplus · Accepted Answer

In an oligopoly industry, there are a limited number of firms with significant market power. Therefore, the price cannot be predicted exactly, as it depends on the actions of the competing firms. However, it is likely to lie between the competitive and monopoly prices since the firms have some ability to set prices but also face competition.

In an Oligopoly Industry, Price