If all of the firms in an oligopoly successfully collude and form a cartel, then total profit for the cartel is equal to what it would be if the market were a monopoly.

Question

Quizplus · Accepted Answer

In an oligopoly, if all firms collude to form a cartel, they effectively act as a single monopoly by restricting output and raising prices to maximize total profits, similar to how a monopolist operates.

If All of the Firms in an Oligopoly Successfully Collude