If oligopolistic firms facing similar cost and demand conditions successfully collude,price and output results in this industry will be most accurately predicted by which of the following models?
A) Kinked-demand curve model of oligopoly
B) Price-leadership model of oligopoly
C) Pure monopoly model
D) Monopolistic competition model

Question

Quizplus · Accepted Answer

When oligopolistic firms successfully collude, they act as a single entity, similar to a pure monopoly, setting prices and output to maximize joint profits.

If Oligopolistic Firms Facing Similar Cost and Demand Conditions Successfully