Oligopoly markets are characterised by:
A)the universal existence of collusive agreements
B)a fall in collective profits if a cartel is organised
C)the pursuit of self-interest by profit-maximising firms always maximising collective profits
D)a conflict between cooperation and self-interest

Question

Quizplus · Accepted Answer

Oligopoly markets are unique in that they present a dilemma between cooperation and self-interest. While firms may benefit from working together and colluding to set prices, each firm also has an incentive to break the agreement and act in their own self-interest. This can lead to conflicts and instability in the market.

Oligopoly Markets Are Characterised By