When Firms in an Oligopoly Successfully Collude and Do Not

question 162

Multiple Choice

When firms in an oligopoly successfully collude and do not cheat on a cartel agreement,they can make a long-run economic profit similar to

• A) perfect competition.
• B) monopoly.
• C) monopolistic competition.
• D) non-colluding oligopolies.
• E) the firms in regulated industries.

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Definitions:

Unethical Behavior

Actions or practices that violate moral or professional standards of conduct.

Corporation

A legal entity recognized by law as separate from its owners, providing limited liability protection to its shareholders.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.