Question

Explain the difference between collusive and non collusive oligopoly market

Answer 1

Collusive oligopoly is when the companies come together and work as a group. ( Change the price of the goods, in affect acting as a monopoly but dividing any profits that they make. ) Non collusive oligopoly exists when the firms in an oligopoly do not collude and so have to be very aware of the reactions of other firms when making price decisions.