Respuesta :
In an oligopoly, no single company has significant market power. Therefore, no firm can raise its prices above what it would have in a perfectly competitive scenario. In an oligopoly, all firms must work together to raise prices and generate greater economic returns.
An oligopoly is a market structure with a small number of firms, neither of which can prevent the other from exercising greater influence. The concentration ratio measures the market share of large companies.
Collusion occurs when oligopolistic companies make joint decisions and act as if they were a single company. Collusion requires explicit or implicit agreements between cooperating firms to limit production and achieve monopoly prices.
An oligopoly can use predatory pricing to drive competitors out of the market. This means keeping prices artificially low, often below the overall cost of production. A price cap strategy can also be used to discourage new entrants. This is also called the entry price.
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