In oligopoly situations, each oligopolist may choose a status quo pricing objective and set its price at the competitive level. Some critics call this pricing behavior
A) market share growth objective.
B) conscious parallel action.
C) dumping.
D) introductory price dealing.
E) predatory pricing.

Question

Quizplus · Accepted Answer

Conscious parallel action refers to when firms in an oligopoly situation choose to set their prices at a competitive level as a collective decision, even though they may not have communicated or colluded directly. This behavior is seen as a way for each oligopolist to maintain market share and avoid price wars. It is often criticized for being anti-competitive, as it can result in higher prices for consumers and may limit innovation in the market.

In Oligopoly Situations, Each Oligopolist May Choose a Status Quo