Economics Oligopoly Questions
Price fixing in oligopoly refers to the collusion or agreement among a few dominant firms in an industry to set and maintain a fixed price for their products or services. This practice is aimed at reducing competition and maximizing profits for the firms involved. Price fixing can be done explicitly through formal agreements or implicitly through tacit understanding among the oligopolistic firms. It is considered illegal in most countries as it restricts market competition and harms consumer welfare.