Answer to Question #250645 in Microeconomics for Mendie

Question

Discuss the assumptions of the oligopolistic market

Answer 1

The main assumptions for this oligopoly model, which is also known as a cartel or collusion oligopoly, are that the firms sell similar commodities and agree to keep the price and quantity produced constant. Because the enterprises can act as a monopoly collectively, they can set the agreed-upon price and quantity.