In markets characterised by oligopoly collusive agreements will always prevail.

Question

Quizplus · Accepted Answer

While collusive agreements are a possibility in markets characterised by oligopoly, they are not guaranteed to prevail. Several factors such as legal framework, market structure, and market demand can influence the behaviour of firms in such markets. Competition authorities also play an important role in preventing anti-competitive behaviour and promoting fair competition. Therefore, it is not always the case that collusive agreements will prevail in oligopolistic markets.

In Markets Characterised by Oligopoly Collusive Agreements Will Always Prevail