Suppose a few powerful firms control all production in an industry and face identical demand and cost schedules.If they successfully collude and maximize joint profit,then price,output,and profit levels in the industry will be the same as those in
A) an unregulated monopolistic firm.
B) a regulated monopolistic firm.
C) a monopolistically competitive firm.
D) a perfectly-discriminating monopolistic firm.
E) a perfectly competitive firm.

Question

Quizplus · Accepted Answer

When firms collude to maximize joint profit, they effectively act as a single monopoly, setting prices and output levels similar to an unregulated monopolistic firm.

Suppose a Few Powerful Firms Control All Production in an Industry