If joint profits are to be maximized in an oligopolistic industry with a homogeneous product,the firms

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In order to maximize joint profits in an oligopolistic industry with a homogeneous product, the firms need to determine the output each firm will produce. This can be achieved through some form of coordination or collusion, such as price leadership or a formal cartel agreement. However, there is always an incentive for individual firms to cheat on the agreement and increase their own profits by increasing output. Therefore, some kind of enforcement mechanism is needed to ensure that firms stick to the agreed-upon output levels.

If Joint Profits Are to Be Maximized in an Oligopolistic