Chapter 1: Q.13 (page 9)

What stops oligopolists from acting together as
a monopolist and earning the highest possible level of profits?

Short Answer

Expert verified

Output prevents them from operating as a monopolist and reaping the greatest revenues possible.

Step by step solution

Step 1. To determine

The factors that prevent oligopolists from behaving as a monopoly and reaping the greatest profits possible.

Step 2. Explanation

Maximum profits can be earned by monopolists if they form a cartel and behave like a monopolist by reducing their output and increasing prices. But they cannot do so as this practice is illegal. Increasing price beyond a certain level disrupts market and creates unhealthy competition.

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What stops oligopolists from acting together as
a monopolist and earning the highest possible level of profits?

Short Answer

Step by step solution

Step 1. To determine

Step 2. Explanation

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What stops oligopolists from acting together asa monopolist and earning the highest possible level of profits?

Short Answer

Step by step solution

Step 1. To determine

Step 2. Explanation

One App. One Place for Learning.

Most popular questions from this chapter

Study anywhere. Anytime. Across all devices.

What stops oligopolists from acting together as
a monopolist and earning the highest possible level of profits?