Unformatted text preview: y This is like pricing high in the activity. Firms can cooperate by choosing to charge a high price and limiting output of the product. This results in monopolist profits spread among the oligopolies. – Act independently of the other firms in the Oligopoly This is like pricing low in the activity. Firms can act independently by increasing their output and lowering their price. This results in competitive market conditions and profits for the firms in the oligopoly. 5 Actions for Firms: Cooperate Firms in an Oligopoly cooperate with one another by choosing to price high and limit their output.
– This results in an equilibrium quantity where MR=MC and P>MR...
View Full Document
This document was uploaded on 03/23/2014.
- Spring '14