Three firms that are successful in colluding to raise their prices must

Question

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Colluding to raise prices typically involves restricting output in order to create a scarcity of the good or service being provided, which in turn allows the firms to charge higher prices without losing significant sales. This strategy can be successful in the short run, but may lead to lower profits in the long run if customers switch to cheaper substitutes or new competitors enter the market.

Three Firms That Are Successful in Colluding to Raise Their