Binding agreements concerning production levels between oligopolists can lead the involved firms to:
A)bankruptcy
B)higher prices and less profit
C)monopoly profit
D)lower prices and more profit

Question

Quizplus · Accepted Answer

Binding agreements between oligopolists to control production levels can lead to monopoly-like profits. By limiting production, they can artificially keep prices high, similar to a monopoly's behavior, thus potentially increasing their profits.

Binding Agreements Concerning Production Levels Between Oligopolists Can Lead the Involved