Final answer:
Oligopolies can't rely on a singular pricing model due to the mutual interdependence among the few dominant firms which are privy to competing or colluding, affecting their pricing strategies and preventing a stable singular price from being established.
Step-by-step explanation:
Oligopolies cannot rely on a singular price model because they operate in a market setting characterized by mutual interdependence among a few dominant firms. Unlike other market structures, firms in an oligopoly closely monitor and react to the pricing and production decisions of their competitors, which can create a dynamic and uncertain pricing environment. If oligopolists choose to compete, they may drive prices down to the point of earning zero economic profits, akin to perfect competition. However, if they decide to collude, they can effectively behave like a monopolist, restricting output to raise prices and profits. The precarious balance of competition versus collusion within oligopolies, coupled with the private temptation of each firm to increase output for greater market share, means that adherence to a single pricing strategy is challenged by the strategic behavior of rival firms and the inability to legally enforce monopolistic agreements.