Which of the following factors increase the likelihood that an oligopolist will collude with other firms in

Question:

Which of the following factors increase the likelihood that an

oligopolist will collude with other firms in the industry? Which

increase the likelihood that an oligopolist will act

noncooperatively and raise output? Explain your answers.

a. The firm’s initial market share is small. (Hint: Think about the

price effect.)

b. The firm has a cost advantage over its rivals.

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Essentials Of Economics

ISBN: 9781319221317

5th Edition

Authors: Paul Krugman, Robin Wells

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