From society's standpoint, cooperation among oligopolists is
A)desirable, because it leads to less conflict among firms and a wider variety of products for consumers.
B)desirable, because it leads to an outcome closer to the competitive outcome than what would be observed in the absence of cooperation.
C)undesirable, because it leads to output levels that are too low and prices that are too high.
D)undesirable, because it leads to output levels that are too high and prices that are too high.

Question

Quizplus · Accepted Answer

Cooperation among oligopolists leads to reduced competition, resulting in higher prices and lower quantities produced than would be the case if the firms competed against each other. This outcome is harmful to consumers, who end up paying higher prices and have access to fewer goods and services. Therefore, from society's point of view, cooperation among oligopolists is undesirable.

From Society's Standpoint, Cooperation Among Oligopolists Is