Economics 9708 · AS & A Level · 7.6

7.6 — practice question

Oligopoly firms aim to maximise profits. How will this influence the pricing behaviour of oligopoly firms operating in a non-collusive market?

  • AA price is fixed for the product that never changes throughout its life cycle.
  • BFirms will agree on the level of advertising costs for a new product.
  • CIf one firm raises its price, other firms will maintain their original price to increase their market share.
  • DIf one firm lowers its price, other firms will increase their price.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI