SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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This market structure can act like a monopoly when the firms all set prices the same
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Monopoly
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Monopolistic Competition
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Perfect Competitio
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Oligopoly
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Explanation:
Detailed explanation-1: -Collusion occurs when oligopoly firms make joint decisions, and act as if they were a single firm. Collusion requires an agreement, either explicit or implicit, between cooperating firms to restrict output and achieve the monopoly price.
Detailed explanation-2: -An oligopoly refers to a market with only a few sellers. Monopolistic competition refers to situations where there are many sellers, but the products are highly differentiated. There are several important nuances to explore between these types of markets.
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