Oligopolistic firms engage in collusion to

Question

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Collusion among oligopolistic firms allows them to reduce or eliminate competition, which can result in higher prices and greater profits for the firms involved. This is the main reason why firms engage in collusion. Choices A and B may be motivations for oligopolistic firms to collude, but they are not the primary reason. Choice D is not a likely motivation, as increased production could lead to greater competition and lower prices, reducing the profitability of the firms involved.

Oligopolistic Firms Engage in Collusion to