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Prices in a collusive oligopoly are unlike to fall, because if prices fall that only benefits the consumer, so the firms will not do it. Also in a collusive oligopoly firms get together and FIX the prices, which answers the question.

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Prices in a collusive oligopoly are unlike to fall, because if prices fall that only benefits the consumer, so the firms will not do it. Also in a collusive oligopoly firms get together and FIX the prices, which answers the question.

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If in an oligopoly market, the firms compete with each other, it is called a non-collusive, or non-cooperative oligopoly. If the firm cooperate with each other in determining price or output or both, it is called collusive oligopoly, or cooperative oligopoly.

Collusive oligopoly exists when the firms in an Oligopolistic market charge the same prices for their products, in affect acting as a monopoly but dividing any profits that they make.

Non collusive oligopoly exists when the firms in an oligopoly do not collude and so have to be very aware of the reactions of other firms when making price decisions.

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Collusive oligopoly is an industry that only contains few producers (oligopoly), in which producers agree among one another as to pricing of output and allocation of output markets among themselves. Cartel, such as OPEC, are collusive oligopolies.

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because of trust...

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The disadvantages and advantages of collusion

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