If oligopolists engage in collusion and successfully form a cartel, the market outcome is

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If oligopolists engage in collusion and form a cartel, they act like a monopoly in the market, limiting output and raising prices. Therefore, the market outcome would be the same as if it were served by a monopoly. Option A is incorrect as monopolistic behavior leads to higher prices and lower output compared to a competitive market structure, which is not efficient. Option B is incorrect as collusion and cartels may improve the profits of the firms, but it does not necessarily improve the efficiency of the market. Option D is incorrect as Nash equilibrium refers to a situation where each player's strategy is a best response to its opponent's strategy and such an equilibrium does not necessarily lead to the most optimal outcome for society.

If Oligopolists Engage in Collusion and Successfully Form a Cartel