In the framework of an oligopoly. what strategy can work like a silent form of cooperation?

In the framework of an oligopoly, what strategy can work like a silent form cooperation?
Oligopoly Progress You are on question 6 of 8 Choose the BEST answer In the framework of an oligopoly, what strategy can work like a silent form of cboperationi O always match other cartel firms price cuts, but dont match price increases O legally enforceable agreements O always match other cartel firms price increases, but dont match price cuts O immediately match price increases <Previous Next >

Answer

Always match other cartel firm’s price cuts, but don’t match price increases.

Generally, in Oligopoly if a firm cuts the price then other companies too reduce the price in order to keep it’s share intact. When any firm increases the price then other firm’s don’t increase the price.

In Oligopoly the prices are rigid therefore the demand curve is kinked.

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