Some critics charge that firms in oligopoly situations practice conscious parallel action. These critics apparently think the firms:
A) seek too high a target return objective.
B) give quantity discounts which are "too large."
C) raise prices to match increases in other industries.
D) are "conspiring" to set prices.
E) administer prices.

Question

Quizplus · Accepted Answer

Critics who charge that firms in oligopoly situations practice conscious parallel action are suggesting that the firms are "conspiring" to set prices at the same level, which is illegal and harmful to consumers. The firms are deliberately avoiding price competition and instead coordinating their prices to maintain high profits for all firms involved.

Some Critics Charge That Firms in Oligopoly Situations Practice Conscious