Asked by
Jazmin Garcia
on Oct 12, 2024
Verified
Compared to a perfect competitor,the colluding oligopolist
A) charges a higher price.
B) has a higher ATC and is therefore less efficient.
C) restricts output.
D) makes a profit in the long run.
E) All of the choices are correct.
Colluding Oligopolist
Firms within an oligopoly that agree to work together instead of competing, in order to control prices and dominate the market.
Perfect Competitor
A theoretical market structure in which many firms sell identical products, and there are no barriers to entry or exit, leading to optimal price and output levels.
Restricts Output
A strategy or condition that limits the amount of goods and services produced, often to maintain prices or due to limited resources.
- Become familiar with the defining attributes of oligopolies and their influence on economic outcomes.
- Explore the impact that oligopolies have on the competitiveness of markets and on the prices paid by consumers.
Verified Answer
HD
Learning Objectives
- Become familiar with the defining attributes of oligopolies and their influence on economic outcomes.
- Explore the impact that oligopolies have on the competitiveness of markets and on the prices paid by consumers.