Oligopoly
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ECONOMICS
Market Structures
Oligopoly
Oligopolies shape markets where a few firms control pricing and competition dynamics
20 Jan 2026
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How does the interdependence of firms in an oligopoly affect their pricing strategies?
Firms independently set prices without regard to competitors, leading to frequent price changes.
Firms always collude openly to fix prices at the highest possible level.
Firms consider the potential reactions of competitors before changing prices, often leading to price stability.
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