When an oligopoly is in a cooperative equilibrium, which of the following is NOT true?
A. The firms in the industry will jointly be earning monopoly profits
B. No individual firm will have an incentive to change output
C. P > MC for each individual firm
D. An individual firm could increase its profit by cheating
An oligopoly is a market structure where there are only a few sellers of the good. Because there is only a few sellers, they can work together and act as a monopoly.
Answer and Explanation:
When an oligopoly is in a cooperative equilibrium, which of the following is NOT true? (D)
A. The firms in the industry will jointly be earning...
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from College Macroeconomics: Tutoring SolutionChapter 4 / Lesson 16