5 Questions
What is a characteristic of oligopolistic markets?
Homogeneous products
What is an oligopoly?
A market in which control lies in the hands of a few large sellers
Why can firms in oligopolistic markets influence prices?
Because of their significant market power
What is a common strategy adopted by firms in oligopolistic markets to maximize profits?
Price-fixing through collusion
Why is collusion considered illegal in many jurisdictions?
It violates competition laws
Test your knowledge of oligopoly markets, where control over an industry lies with a few large sellers. This quiz covers topics such as market power, product homogeneity, and the influence of firms on prices.
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