In markets characterized by oligopoly a. the oligopolists earn the highes profit

Question

In markets characterized by oligopoly a. the oligopolists earn the highes profit when they cooperateand behave like a monopolist. b.collusive agreements will always prevail. c.collective profits are always lower with cartel arrangementsthan they are without cartel arrangements. d.pursuit of self-interest by profit-maximizing firms alwaymaximizes profits in the market. In markets characterized by oligopoly a. the oligopolists earn the highes profit when they cooperateand behave like a monopolist. b.collusive agreements will always prevail. c.collective profits are always lower with cartel arrangementsthan they are without cartel arrangements. d.pursuit of self-interest by profit-maximizing firms alwaymaximizes profits in the market.

Explanation / Answer

C .collective profits are always lower with cartel arrangements than they are without cartel arrangements. because it would mean that cartel will try to max profit while without it each firm will pick the best choice for its own firm whichc could mean not the most efficient

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