Microeconomics – Oligopoly Market
The college textbook market is an oligopoly. There is tacit collusion which results in an informal cartel which results in high prices. In addition, publishers put out new editions frequently in order to reduce competition from used book sales.
1. Using the market (rather than the government or a new law) what could be done to break up the college textbook cartel and lower textbook prices to students?
2. What is oligopoly market? and why is it important to understand what oligopoly market is? (100 words) 3. Can the government help lower the textbook prices? Why or why not? (50 words) ell■
