In the case of oligopoly markets,self-interest prevents cooperation and leads to an inferior outcome for the firms that are involved.

Question

Quizplus · Accepted Answer

Oligopoly markets are characterized by a small number of dominant firms that have a significant influence on the market price and output. In such markets, self-interest often leads to the pursuit of individual profits at the expense of the collective welfare of the group. As a result, cooperation among firms is difficult to achieve, and the market outcome tends to be inferior to one that could be achieved through cooperation. Therefore, the statement is true.

In the Case of Oligopoly Markets,self-Interest Prevents Cooperation and Leads