Explain the role of cooperation

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1. Explain the role of cooperation that may find its way into an oligopoly. Using economic theory, when does "cooperation" go "over the line" and become "collusion?" Cite some real world examples of cooperation that have devolved to collusion.

2. This question focuses on an oligopoly and its reliance on economies of scale.

a. Explain the role of economies of scale in the success, or perhaps lack of success, for a given supplier operating within the context of oligopoly. In particular, how can economies of scale relate to the achievement of a competitive advantage in the marketplace?

b. Why is market share within the oligopoly so important in the achievement of economies of scale?

c. Can an oligopoly firm ever become so large that they lose their competitive advantage due to diseconomies of scale? Explain with both narrative and an illustrative graph (no numbers).

Reference no: EM131687178

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