Because each oligopolist cares about its own profit rather than the collective profit of all the oligopolists,what is the result
A)They have incentives to cheat.
B)Each firm's profit ends up being zero.
C)Society is worse off.
D)Collusion is necessary.

Question

Quizplus · Accepted Answer

Since each oligopolist cares about its own profit, there is an incentive to cheat by lowering prices or increasing output in order to gain a larger market share. This can lead to a price war, decreased profits for all firms, and potential market failure.

Because Each Oligopolist Cares About Its Own Profit Rather Than