In a collusive oligopoly firms generally exhibit cooperative behavior, while in perfect competition, firms generally exhibit non cooperative behavior.

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In a collusive oligopoly, firms may agree to set prices or limit output in order to increase profits for all firms in the industry. This behavior is cooperative in nature. In perfect competition, firms are price takers and must compete with other firms for customers. Each firm is non cooperative and solely focused on maximizing its own profits.

In a Collusive Oligopoly Firms Generally Exhibit Cooperative Behavior, While