1523EconomicsMedium
Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will ________ and the total output produced will ________?
Aincrease; increase
Bincrease; decrease
Cdecrease; decrease
Ddecrease; increase
Correct answer
D. decrease; increase
Explanation
The correct answer is decrease; increase.