____ facilitates joint profit maximization for the oligopoly.

Question

Quizplus · Accepted Answer

Collusion allows the oligopoly to work together and set prices at a level that maximizes joint profits. This can involve agreements to limit production or raise prices in order to increase profits for all firms in the oligopoly. Entry barriers and switching costs may also benefit the oligopoly, but they do not necessarily facilitate joint profit maximization in the same way that collusion does. Externalities are costs or benefits that affect parties outside of the oligopoly, and do not directly facilitate joint profit maximization within the oligopoly itself.

____ Facilitates Joint Profit Maximization for the Oligopoly