-The firm depicted in Figure 11-15 is one of three identical noncollusive oligopolists in an industry,where each charges price P₂ and sells Q₃.If the three firms form a cartel,the price and output combination for this firm will involve a

Question

-The firm depicted in Figure 11-15 is one of three identical noncollusive oligopolists in an industry,where each charges price P<sub>2</sub> and sells Q<sub>3</sub>.If the three firms form a cartel,the price and output combination for this firm will involve a A) higher price and lower output B) higher price and higher output C) higher price and the same output D) lower price and more output E) lower price and the same output

Quizplus · Accepted Answer

When firms in an oligopoly form a cartel, they effectively act as a monopoly, leading to a higher price and lower output compared to competitive outcomes.

-The Firm Depicted in Figure 11-15 Is One of Three