When firms in an oligopoly successfully collude and do not cheat on a cartel agreement,they can achieve long-run economic profit similar to

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Collusion among firms in an oligopoly is similar to a monopoly as they are able to restrict output and charge higher prices, resulting in long-run economic profits. Perfect competition and monopolistic competition are characterized by many small firms without the ability to collude, and therefore cannot achieve long-run economic profits through collusion. Non-colluding oligopolies engage in price competition, resulting in lower profits for all firms. Regulated industries have restrictions on pricing and profits, making them distinct from oligopolistic collusion.

When Firms in an Oligopoly Successfully Collude and Do Not