If firms in an oligopoly industry producing differentiated products collude,________.

Question

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When firms in an oligopoly industry producing differentiated products collude, they collectively produce the monopoly output level (which is less than the competitive level but greater than the non-collusive oligopoly level) and divide the monopoly profits. This is achieved by setting a high price and restricting output to ensure that they earn higher profits than they would in a non-collusive oligopoly setting.

If Firms in an Oligopoly Industry Producing Differentiated Products Collude,________