Why is it not surprising to find that in the oligopoly, Ask an Expert

Economics

Testifying at a price fixing trial involving Cargill Corp. and market for chicken growth hormone, (in which Cargill is one of only three firms worldwide), an executive for Perdue said: "It's an oligopoly. When one (firm) changes price, they all do... usually within minutes."

Why is it not surprising to find that in the oligopoly which sells basically undifferentiated product like chicken growth hormone all the firms change prices simultaneously, even if there is no explicit price fixing?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9306291

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