Chapter 66, Problem 1MCQ

To determine

To choose: the option that states the point that makes it easier for oligopolies to coordinate raising prices.

Answer to Problem 1MCQ

Correct option is d, i.e., identical perceptions of fairness.

Explanation of Solution

Oligopoly is referred to as a market structure that is controlled by a small number of large producers or sellers. Oligopolies are often interdependent in their output and pricing policies. These are an outcome of the aspiration to maximize profits, usually resulting in collusion between companies. 

So, identical perceptions of fairness make it easier for oligopolies to coordinate on raising prices.