Oligopolies would like to act like a monopoly but self-interest often drives them closer to competition.

Question

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Oligopolies consist of a few large firms that dominate a market. They would like to act like a monopoly by setting high prices and limiting output to maximize profits. However, self-interest often drives them closer to competition as they try to gain a larger market share and increase profits. This can result in price wars, promotional campaigns, and innovation to differentiate their products, all of which are characteristics of a competitive market.

Oligopolies Would Like to Act Like a Monopoly but Self-Interest