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Qusetion: Explain why if there is no formal or informal collusion in an oligopoly market firms are more likely to match a price cut by an individual firm than they are to match a price increase? If firms in an oligopoly do indeed behave in this way (matching price cuts, but not price hikes), what unusual shape does the demand curve facing the individual firm assume?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92587171

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