Given an Oligopolistic Industry Characterized by a Collusive Agreement and Constant

Multiple Choice

Given an oligopolistic industry characterized by a collusive agreement and constant unit costs of production, which of the following statements is true?

A) As the number of firms expands, the incentive to cheat on the collusive agreement increases.
B) As the number of firms falls, aggregate output falls and aggregate profit rises.
C) As the aggregate output rises, aggregate profit does not change.
D) As the number of firms expands, aggregate output rises and aggregate profit falls.