Suppose an Oligopoly Is Composed of Four Firms

question 158

True/False

Suppose an oligopoly is composed of four firms. One firm has a 50% market share; another firm, 35%; another, 10%; and the fourth, 5%. It will be easier for this industry to engage in tacit collusion than for an oligopoly each of whose four firms has 25% of the market.

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Definitions:

Decentralizing Decision-making

involves distributing authority for decision-making from a central figure or location to individuals or units at various levels within an organization or system.

Flattening Structures

The process of reducing levels of hierarchy within an organization or system, leading to a more horizontal organizational structure.

Norms Of Solidarity

Guidelines that promote social cohesion and mutual aid among members of a society or group, facilitating cooperation and unity.

Social Category

A classification of people based on shared characteristics, without necessarily implying social interaction among the members of the category.