When firms collude, they are looking to operate as a monopoly by
A) raising prices and output in the market.
B) lowering prices and output in the market.
C) raising prices and reducing output in the market.
D) determining output where price equals marginal cost.

Question

Quizplus · Accepted Answer

When firms collude, they aim to maximize their collective profits by acting as a monopoly, which typically involves raising prices and reducing output to increase scarcity and drive up the price.

When Firms Collude, They Are Looking to Operate as a Monopoly