If all of the oligopolists in a market collude to form a cartel,total profit for the cartel is less than that of a monopolist.

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If all oligopolists collude to form a cartel, they can act like a monopolist and collectively maximize their profits by restricting output and charging higher prices. In this case, the total profit for the cartel could be higher than that of a monopolist. However, such collusion is illegal in many countries and difficult to sustain as each member has an incentive to cheat and increase their output.

If All of the Oligopolists in a Market Collude to Form