According to the information provided, the fact that both countries have colluded to earn higher profit shows their desire to keep production levels:
A)higher than the competitive market equilibrium
B)lower than the Nash equilibrium
C)at the Nash equilibrium
D)higher than the Nash equilibrium

Question

Quizplus · Accepted Answer

Collusion to earn higher profits typically involves reducing production to increase prices, which results in production levels lower than the Nash equilibrium, where each player's strategy is optimal given the strategies of others.

According to the Information Provided, the Fact That Both Countries