Ask Question
BusinessBusiness
29 June, 23:23

The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to

+4
Answers (2)
  1. 30 June, 02:16
    0
    work together in a collusive agreement that will maximize the profits for the supplying firms in the oligopolistic industry versus the temptation to cheat on that agreement in order to increase the company's profit.

    Explanation:

    A collusive agreement is a secret non competitive agreement made between competing firms in order to gain market advantage. Sometimes firms in an oligopolistic industry agree to not compete with each other, that leads to a collusive oligopoly.

    The problem is that a cheater will always want more, and first they cheat on customers, but eventually they end up cheating their own collusive agreement.
  2. 30 June, 02:55
    0
    cooperate in a joint aggrement to maximize profit as well as the incentive to cheat to have increaseed share of the profit.

    Explanation:

    Since oligopolistic market has a joint decision making interdepency on each other to ensure that each firm in the industry has its own share of the market, there can only be conflicting behaviours amongst the firms to either make profits togtehr or make profit at the detriment of tthe other firms
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Your firm has just issued five-year floating-rate notes indexed to six-month U. S. dollar LIBOR plus 1/4 percent. What is the amount of the first coupon payment your firm will pay per U. S. $1,000 of face value, if six-month LIBOR is currently 7.
Answers (1)
Parent Company's wholly-owned subsidiary, Son Corporation, maintains its accounting records in Danish krone. However, because all of Son's branch offices are in Sweden, its functional currency is the Swedish krona.
Answers (1)
With regard to ongoing expenses, the most expensive type of long-term financing is the sale of common stock. Answer a. True b. False
Answers (1)
There is a possibility of a safety hazard for a manufactured product. As yet, no claim has been made for damages, though there is a reasonable possibility that a claim will be made.
Answers (1)
What is the primary function of financial institutions in the economy?
Answers (1)
New Questions in Business
Gault Corporation had the following shares of stock outstanding on December 31, 2018: Common stock, $50 par value, 200,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 20,000 shares outstanding Dividends were in arrears
Answers (1)
An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying interest on check - ing accounts.
Answers (1)
What effect does the availability of many substitutes have on the elasticity of demand for a good?
Answers (1)
What strategies do companies use for their financial benefit
Answers (1)
1. On March 1, a business paid $3,600 for a twelve month liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000.
Answers (1)
Home » Business » The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to
Sign Up Forgot Password?