If the government stops enforcing its collusion laws and oligopolies are now able to collude, they will ________ the price charged and ________ the total output produced.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

When oligopolies are able to collude, they tend to act like a monopoly, setting higher prices and reducing total output to maximize their combined profits.

If the Government Stops Enforcing Its Collusion Laws and Oligopolies