When competing power blocs exist within an oligopolistic industry,
A) concentration ratios are low
B) the laissez-faire approach can be justified
C) prices are higher than under monopoly
D) nationalization is necessary
E) contestable markets exist by definition

Question

Quizplus · Accepted Answer

In an oligopolistic industry, the existence of competing power blocs can justify a laissez-faire approach because the competition between these blocs can regulate the market to some extent, reducing the need for government intervention.

When Competing Power Blocs Exist Within an Oligopolistic Industry