In an oligopoly situation, a wise marketing manager will probably set the firm's price level:
A) at the competitive level.
B) on a negotiated basis-that is, customer by customer.
C) above competitors' prices.
D) at least 10 percent below the price leader's price.
E) below competitors' prices.

Question

Quizplus · Accepted Answer

In an oligopoly, firms often set prices at a competitive level to avoid price wars, which can erode profits for all firms involved. Oligopolies are characterized by a few firms dominating the market, and these firms usually try to avoid aggressive price competition to maintain stable and profitable market conditions.

In an Oligopoly Situation, a Wise Marketing Manager Will Probably