ECN-360 Module 3 DQ 2

ECN-360 Module 3 DQ 2

Intermediate Economics – Monopoly and Oligopoly

Grand Canyon University

The manufacturers of R.C. Cola, with 2.1% market share in the soft drink industry, recently launched a new advertising campaign describing their brand as a “hip alternative” to “corporate colas” like Coke and Pepsi. Why don’t they simply try and gain market share by cutting price? What property of oligopoly markets explains this type of behavior?

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