Two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.

Answer :

Two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is B. more than the allocatively efficient amount.

In the field of business, oligopolistic firms can be described as those firms that set their own prices for their products as there are only a few companies making the same kind of product.

As there is less competition in the market for these kinds of products, the cartel tends to set a price that is more than the efficient amount. This is because the cartel wants to get as much profit as possible from selling these products. The quantity of the products is also kept higher than the efficient amount because there are only a few oligopolistic firms that are making that particular kind of product.

Although a part of your question is missing, you might be referring to this question:

Two oligopolistic firms forming a cartel will want to set a price so that the cartel produces a quantity that is _________ the allocatively efficient amount.

A less than

B more than

C the same amount as

D One cannot tell.

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