Economics (AS & A Level) · May / June 2024 · Paper 33 · Question 5

Oligopoly firms seek to maximise profits. How will this affect the pricing behaviour of oligopoly firms involved in a non-collusive market?

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

As printed in the paper