Firms in an oligopoly market will have a more difficult time maintaining price coordination when:

Question

Quizplus · Accepted Answer

In an oligopoly market, prices are often coordinated among the firms to maximize profits. This is easier to accomplish when the products are similar and the firms have similar cost structures. However, when products are highly differentiated, it is more difficult to coordinate prices as each firm may have a different perceived value for their product. Therefore, option C, where the firms' products are highly differentiated, represents a situation where maintaining price coordination would be more difficult.

Firms in an Oligopoly Market Will Have a More Difficult