The three practices of oligopolies that concern the government the most are price leadership, collusion, and cartels. These practices can lead to anti-competitive behavior, resulting in higher prices for consumers and reduced market efficiency. Collusion and cartels directly involve firms working together to set prices or control market supply, which is illegal in many jurisdictions, while price leadership can also result in tacit collusion where firms follow the price changes of a market leader.
What are the three practices of oligopolies that concern the government the most?
price leadership, collusion, and cartels
differentiation, collusion, and cartels
cartels, differentiation, and price leadership
collusion, price leadership, and differentiation
1 answer