Binding agreements concerning production levels between oligopolists can lead the involved firms to what outcome
A)monopoly profit
B)lower prices and more profit
C)zero profit
D)higher prices and less profit

Question

Quizplus · Accepted Answer

Binding agreements between oligopolists can lead to monopoly profit because they can coordinate to restrict output and raise prices, similar to a monopoly, maximizing their joint profits.

Binding Agreements Concerning Production Levels Between Oligopolists Can Lead the Involved