The quickest way for aggressive oligopolists to expand production capacity and market power is to
A) erect barriers to entry
B) cut price to sell more
C) raise price to increase profit and apply the profit to research and development
D) merge with a competitor
E) conduct surveys to price discriminate more effectively

Question

Quizplus · Accepted Answer

Merging with a competitor allows aggressive oligopolists to quickly expand production capacity and market power by combining resources, eliminating a competitor, and potentially gaining a larger share of the market.

The Quickest Way for Aggressive Oligopolists to Expand Production Capacity