-If Firms in an Oligopolistic Industry Successfully Collude and Form

Multiple Choice

-If firms in an oligopolistic industry successfully collude and form a cartel, what price and output will result?

A) The competitive price and output.
B) The monopolistically competitive price and output.
C) A price lower than the competitive price and, because there are only a few firms in the industry, less output than the competitive amount.
D) A price higher than the monopoly price and, because there is more than one firm in the industry, more output than the monopoly amount.
E) The monopoly price and output.