Question

1. ANALYZING ISSUES Why might American oligopolies
sometimes be tempted to act in collusion?

Answer 1

Oligopolies are market structures in which few companies determine production in a particular sector, that is, there are few sellers for many buyers. Thus, by acting in collusion oligopolists can maintain a higher price at a lower amount offered, earning a higher profit without conflict or dispute over the market.

Step-by-step explanation:

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Answer 2

It is a feature of oligopolies

Step-by-step explanation:

Oligopolies are market structures in which few companies determine production in a particular sector, that is, there are few sellers for many buyers. Thus, by acting in collusion (association) oligopolists can maintain a higher price at a lower amount offered, earning a higher profit without conflict or dispute over the market. Thus collusion is a characteristic of oligopolistic markets.