As a group,how would oligopolists generally be better off
A)if they would produce the perfectly competitive quantity of output
B)if they would produce more than the perfectly competitive quantity of output
C)if they would charge the same price that a monopolist would charge if the market were a monopoly
D)if they would operate according to their own individual self-interests

Question

Quizplus · Accepted Answer

Oligopolists would generally be better off if they would charge the same price that a monopolist would charge if the market were a monopoly. This is because oligopolies have significant market power due to limited competition, and by charging a higher price than a monopolist would charge, they risk losing customers to substitutes or potential new entrants. However, by charging the same price as a monopolist, they can maximize their profits while maintaining their market power. Producing the perfectly competitive quantity of output or producing more than the perfectly competitive quantity of output may result in lower profits, while operating solely according to their own individual self-interests may lead to price wars and decreased profits for all firms involved.

As a Group,how Would Oligopolists Generally Be Better Off