The basic problem of a shared monopoly from the point of view of those involved is that
A)profits are lower than in the other oligopoly models.
B)the shared output is too high for the high price to be maintained.
C)collusive agreements are difficult to sustain.
D)revenue is lower than in the other oligopoly models.

Question

Quizplus · Accepted Answer

Collusive agreements among firms in a shared monopoly (or oligopoly) are difficult to sustain due to incentives for individual firms to cheat on the agreement to increase their own profits, leading to instability in the collusion.

The Basic Problem of a Shared Monopoly from the Point