Which of the following is correct? When oligopolies collude
A)they make higher profits and consumers of the product are better off.
B)they make higher profits but consumers of the product are worse off.
C)they make lower profits and consumers of the product are better off.
D)they make lower profits and consumers of the product are worse off.

Question

Quizplus · Accepted Answer

When oligopolies collude, they reduce competition and can charge higher prices, leading to higher profits for themselves. However, this results in higher prices for consumers, making them worse off. Therefore, option B is the correct choice.

Which of the Following Is Correct? When Oligopolies Collude