Question

When a group of firms chooses to work together to turn a non-monopoly market into a monopoly market by securing formal agreements on price, they are said to have formed a _______________. Select the correct answer below: monopoly oligopoly collusion cartel

Answer 1

Answer:

Option B is the answer – Oligopoly

Explanation:

Usually, there are not set limit to the number of firms that can come together to form the oligopolistic market structure but the number must be low so that one firm can significantly have an influence on the other. This form of market arrangement can been seen in most part of the world and the common industries dominated by oligopolies are; Cable Television services, Oil and Gas, airlines, etc