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Economics questions and answers. Differentiated oligopoly exists where a small number of firms are: Producing goods which differ in terms of quality and design. Setting price and output collusively.
Producing virtually identical products. The term “oligopoly” refers to an industry where there are only a small number of firms operating. In an oligopoly, no single firm enjoys a large amount of market power. Thus, no single firm is able to raise its prices above the price that would exist under a perfect competition scenario. In an oligopoly, all firms would need to collude in. Differentiated oligopoly exists where a small numbee of firm are: Producing goods that diffee in term of quality and design. Setting price and output collusivley. Monopolistic competition is an industry characterized by a:
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