A Problem Often Encountered When Oligopolists Try to Cooperate and Set

question 38

Multiple Choice

A problem often encountered when oligopolists try to cooperate and set output and prices in the market is that:

• A) the number of firms in the industry is too small to form a successful cartel.
• B) most oligopolists produce highly differentiated products.
• C) some firms might cheat on the agreed-upon market price.
• D) market demand and costs are inflexible and do not change.

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