Why Do Firms in an Oligopoly Find It Difficult to Cooperate

question 160

Essay

Why do firms in an oligopoly find it difficult to cooperate and not cheat on a cartel agreement?

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Definitions:

Initial Feasible Solution

The starting point of an algorithm that represents a possible solution to a problem, which meets all the constraints of the problem.

Routes

Paths or courses designated for transportation from one location to another.

Optimal Solution

A solution that represents the best possible outcome, often in terms of efficiency or cost, within a given set of constraints.

Route Combinations

Various possible paths or methods that can be taken to achieve a particular production process or delivery.