If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models?

Question

Quizplus · Accepted Answer

When oligopolistic firms collude, they act as a single monopoly by setting prices and output levels collectively to maximize their joint profits. This behavior aligns with the pure monopoly model, where a single firm controls the entire market, setting prices above competitive levels and reducing output to increase profits.

If Oligopolistic Firms Facing Similar Cost and Demand Conditions Successfully