If three or four homogeneous oligopolists collude, the resulting price and production outcomes will be similar to those of pure monopoly.

Question

Quizplus · Accepted Answer

When three or four homogeneous oligopolists collude, they effectively act as a single producer (a monopolist) by setting prices and production levels collectively to maximize their joint profits, leading to outcomes similar to those of a pure monopoly, where prices are higher and production is lower compared to competitive markets.

If Three or Four Homogeneous Oligopolists Collude, the Resulting Price