In the framework of an oligopoly, what strategy can work like a silent form of cooperation?
A) always match other cartel firms' price cuts, but don't match price increases
B) always match other cartel firms' price increases, but don't match price cuts
C) immediately match price increases
D) legally enforceable agreements

Question

Quizplus · Accepted Answer

In an oligopoly, firms may engage in tacit collusion by matching price cuts but not price increases, which helps maintain stable prices and profits without explicit communication or agreements.

In the Framework of an Oligopoly, What Strategy Can Work