What are the possibilities of raising prices above competitive levels in oligopolistic markets?
Answers:
An oligopoly member may raise its prices to signal the other members of an opportunity to reciprocate. Depending on the history and the nature of the group's rivalry, their may be a higher price equilibrium.
The oligopoly itself may be wary of excessive price increases depending on the barriers to entry in their industry as well as the presence of viable substitutes for their products.
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