At what output do oligopolies produce at?
I assume they can't produce at the profit maximising output as collusion wouldn't even be an appropriate option for these firms.
But in an older essay, to display limit pricing in an oligopoly, I showed it going from profit maximising output to just above the competitive price output (MC=AR) and I got the marks.
So I'm a bit confused, any ideas?
! By the way my A level specification does NOT use the kinked demand curve, so can someone explain with an ordinary cost revenue diagram if necessary? !
But in an older essay, to display limit pricing in an oligopoly, I showed it going from profit maximising output to just above the competitive price output (MC=AR) and I got the marks.
So I'm a bit confused, any ideas?
! By the way my A level specification does NOT use the kinked demand curve, so can someone explain with an ordinary cost revenue diagram if necessary? !
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