When oligopolistic companies engage in collusion, the companies are involved in a

Question

Quizplus · Accepted Answer

When oligopolistic companies engage in collusion, they are involved in a cooperative game. In a cooperative game, the players work together to maximize collective profits. Collusion involves the companies agreeing to restrict competition by setting prices, dividing up territories, or limiting production to achieve higher prices and profits. This is an example of a cooperative game as the companies are working together to benefit themselves.

When Oligopolistic Companies Engage in Collusion, the Companies Are Involved