The best way for oligopolists to increase their profits is to:
A)agree to limit production
B)increase production to increase the size of the market
C)decrease prices to gain larger market share
D)operate according to their own self-interest

Question

Quizplus · Accepted Answer

Oligopolists can increase their profits by agreeing to limit production because this reduces the supply in the market, which in turn increases the price of their product. By reducing the supply, the demand for the product remains constant or may even increase due to the scarcity of the product. This leads to higher prices, and thus higher profits for the oligopolists.

The Best Way for Oligopolists to Increase Their Profits Is