Collusive control over price may permit oligopolists to
A) use new technology,achieve economies of scale,and get government subsidies.
B) achieve economies of scale,reduce costs,and prevent price cheating.
C) increase product demand,increase product supply,and lower cost.
D) reduce uncertainty,increase profit,and possibly limit entry of new firms.
E) make the industry more competitive.

Question

Quizplus · Accepted Answer

Collusive control over price allows oligopolists to reduce uncertainty, increase profit, and possibly limit the entry of new firms. By working together to artificially set prices, the firms in the oligopoly can ensure that they are all making a profit and are not undercutting each other. This can also help to reduce uncertainty because the firms know what they can expect to earn from their products. Additionally, if the collusive control is successful, it can make it difficult for new competitors to enter the market and challenge the established firms.

Collusive Control Over Price May Permit Oligopolists to