Question

Distinguish between collusive and non collusive oligopoly

Answer 1

Answer:-

Collusive oligopoly

Collusive oligopoly is a form of market in which few firms form a mutual agreement to avoid competition. They form a cartel and fix the output quotas and the market price. Leading firm in the market is accepted by the cartel as a price leader.

Non-collusive oligopoly

Collusive oligopoly is a form of market in which few firms form a mutual agreement to avoid competition. ... Non-collusive oligopoly is a form of market in which few firms. Each firm has its price and output policy is independent of the rival firms in the market.

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