As a group, oligopolists would always earn the highest profit if they would
A)produce the perfectly competitive quantity of output.
B)produce more than the perfectly competitive quantity of output.
C)charge the same price that a monopolist would charge if the market were a monopoly.
D)operate according to their own individual self-interests.

Question

Quizplus · Accepted Answer

Oligopolists have the ability to influence the market price due to their market power, but they must also consider the potential for a price war with their competitors. By charging the same price as a monopolist would charge, they can maximize their profits while avoiding a price war. This strategy, known as collusion, is illegal in many countries as it is detrimental to consumer welfare.

As a Group, Oligopolists Would Always Earn the Highest Profit