Question

To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________.

a. collude with each other
b. form various degrees of cartels
c. cooperate rather than compete with each other
d. compete rather than cooperate with each other

Answer 1

an agreement among firms in a market about quantities to produce or prices to change.. cartel ... In markets characterized by oligopoly, they earn the highest profit when they. ... To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to.