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Collusive oligopolies exist in many forms, but the most common method of collusion is when the firms set identical prices on a product.

Collusive oligopolies exist in many forms, but the most common method of collusion is when the firms set identical prices on a product. They also divide the market into other regions which basically creates regional monopolies. The main idea of collusion is so oligopolistic firms don’t want to face head on competition which could harm their profits. Do you believe collusive oligopolies tend to be unstable? Why?

 

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