If There Is an Increase in the Number of Firms

question 96

Essay

If there is an increase in the number of firms in an oligopoly, what effect would this have on the market if:
(a) they act independently of each other, and
(b) they collude and enforce a cartel agreement?

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Definitions:

Cuban Government

The governing body of Cuba, characterized by a one-party socialist system under the Communist Party, focusing on centralized planning and state control.

Native Americans

The indigenous peoples of the United States, including both the individuals and the cultures that predate European colonization.

European Diseases

Infectious diseases brought to the Americas and other regions by European explorers and colonizers, leading to significant indigenous population declines.

Poverty Rate

A statistical measure reflecting the percentage of the population whose income falls below the poverty line, taking into account the minimum level of income required for basic living standards.