Start practising
Practice mode Oligopoly

What do firms in a cartel do?

Correct answer B. Firms collude

Explanation

A cartel is a formal agreement among producers to coordinate prices or output rather than compete, which is collusion.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

More Oligopoly questions

See all
Advertisement
Question 03 Oligopoly

When an oligopolist chooses its output on its own to maximise its profit, how does that output compare with monopoly and competitive levels?

Correct answer C. More than the level produced by a monopoly and less than the level produced by a competitive market

Open question
Question 04 Oligopoly

What happens as the number of sellers in an oligopoly rises?

Correct answer B. The price in the market moves closer to marginal cost

Open question

Discussion

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.