The key behavioral assumption of the cartel theory is that oligopolists in an industry
A)try to maximize sales instead of profits.
B)act as if they are perfect competitors.
C)act in a manner consistent with there being only one firm in the industry.
D)try to create a demand for their products by way of advertising.

Question

Quizplus · Accepted Answer

The key behavioral assumption of the cartel theory is that oligopolists in an industry act in a manner consistent with there being only one firm in the industry. This means that they coordinate their actions as if they were a monopoly, in order to maximize their joint profits.

The Key Behavioral Assumption of the Cartel Theory Is That