As a Group, Oligopolists Would Always Be Better Off If

question 178

Multiple Choice

As a group, oligopolists would always be better off if they would act collectively:

• A)as a single monopolist
• B)as a single competitor
• C)as if they were each seeking to maximise their own profit
• D)in a manner that would prohibit collusive agreements

---

Definitions:

Spreading Effect

A phenomenon in economics where an initial investment leads to additional benefits that spread beyond the immediate context, often stimulating further economic activity.

Fixed Cost

Expenses that remain constant regardless of the firm's production volume.

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.