Which of the following factors make it more likely that oligopolists will play noncooperatively? Which make it
Question:
Which of the following factors make it more likely that
oligopolists will play noncooperatively? Which make it more
likely that they will engage in tacit collusion? Explain.
a. Each oligopolist expects several new firms to enter the
market in the future.
b. It is very difficult for a firm to detect whether another firm
has raised output.
c. The firms have coexisted while maintaining high prices for a
long time.
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