If a group of sellers that can restrict entry into a market, they will often be able to enlarge their total profit by
A) raising price and reducing output.
B) raising price and expanding output.
C) lowering price and expanding output.
D) raising price and leaving output unchanged.

Question

Quizplus · Accepted Answer

By restricting entry, sellers can reduce competition, allowing them to raise prices and reduce output to maximize profits, similar to a monopolistic strategy.

If a Group of Sellers That Can Restrict Entry into a Market