Question

List the three different ways in which oligopoly firms may behave.

Answer 1

Explanation:

List the three different ways in which oligopoly firms may behave. Following are the three different ways in which oligopoly firms may behave: (i) Firms may collude together and decide not to compete with each other and maximise total profits, as in collusive oligopoly.

Answer 2

Explanation:

the SMC curve cut the AVC curve at the minimum point of the AVC curve