The key behavioral assumption of the cartel theory is that oligopolists in an industry
A)try to maximize sales instead of profits.
B)act as if they are perfect competitors.
C)act in a manner consistent with there being only one firm in the industry.
D)try to create a demand for their products by way of advertising.
E)none of the above

Question

Quizplus · Accepted Answer

The cartel theory assumes that oligopolists act in a coordinated manner, as if they were a single firm, to maximize their collective profits, rather than competing against each other. This involves setting prices and output levels that are beneficial for all members of the cartel.

The Key Behavioral Assumption of the Cartel Theory Is That