By agreeing to work together, either formally or informally, oligopolies in a market can ________ profits by reducing output and charging a ________ price which is much like a monopoly.
By agreeing to work together, either formally or informally, oligopolies in a market can increase profits by reducing output and charging a high price which is much like a monopoly.
When firms form an oligarchy in a market to reduce output and keep prices high, it is called collusion. They more or less become like a monopolistic entity as they collude together to reduce output and demand an agreed higher price.
