I b. price D and quantity E c. price A and quantity F d. price G and quantity H e. price E and quantity D 7. Agreement among firms in an industry to set a certain price or to share a market is called a. coordination. Cartels a. occur in oligopolistic industries. In an oligopoly with a dominant firm, a. price is set by the dominant firm at its profit-maximizing level, and firms on the competitive fringe accept this price as the market price. The kinked demand curve is a possible explanation of a. flexible prices in oligopoly.
Profits can persist a. under all market structures.