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What is Meant by Collusive Oligopoly? - Economics

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प्रश्न

What is meant by collusive oligopoly?

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उत्तर

A collusive oligopoly is a form of market in which few firms mutually agree to avoid competition. They form a cartel and fix the output quotas and the market price. The leading firm in the market is accepted by the cartel as a price leader. All the firms in the cartel accept the price as fixed by the price leader.

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2013-2014 (March) Foreign Set 2
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