The Collusive Solution Is

Multiple Choice

The collusive solution is:

A) collectively irrational because each firm could produce more output in the Cournot solution.
B) individually irrational because each firm earns less than it could in the Cournot solution.
C) individually irrational because each firm has a private profit incentive to produce more output.
D) collectively irrational because joint profit incentives render the collusive solution unstable.