Answer to Question #222220 in Economics for Pinklet

Question #222220

How can an oligopoly cause market failure?


1
Expert's answer
2021-08-02T11:05:48-0400

In an oligopoly, no single firm enjoys monopoly. The sellers may collude to set higher prices to maximize their returns. The sellers may also control the quantity of goods produced in the market and may collude to create scarcity and increase the prices of commodities.



Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
APPROVED BY CLIENTS