Question

Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.

Answer 1

Assuming that this is referring to the same list of options that was posted before with this question, the proper response is that they try to buy out competitors with cash. 

Answer 2

The options of the question are, A) keeping prices low. B) offering promotions. C) advertising. D) cultivating brand loyalty. E) overcoming barriers to entry. F) developing a specific image.  

The correct answer are, B) offering promotions, C) advertising and D) cultivating Brand loyalty.

The practices that describe how producers in oligopolies generally tried to create competition are, by offering promotions, advertising, and cultivating brand loyalty.  

The term oligopoly refers to a market structure where only participate few companies. When a determined market only has some companies participating, instead of many companies that compete each other, is when an oligopoly is present. An oligopoly does not allow other companies to enter the market, increases prices of products and services and because lack of competition, there is such a few innovation or none. On the other hand, the practices that describe how producers in oligopolies generally tried to create competition are, by offering promotions, advertising, and cultivating brand loyalty.