Relative to a competitively organized industry, firms acting collusively are more likely to produce

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Firms acting collusively, such as in a cartel, tend to restrict output to increase prices above competitive levels, thereby earning higher economic profits. This behavior contrasts with a competitive industry, where firms produce more, charge lower prices, and earn only normal profits due to competition.

Relative to a Competitively Organized Industry, Firms Acting Collusively Are