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Frequently, we observe restaurants going out of businessbecause of insufficient profits. However, consider if in your town, you and 2 other owners owned the three

Frequently, we observe restaurants going out of businessbecause of insufficient profits.

However, consider if in your town, you and 2 other owners owned the three restaurants in town.

Would it be possible for the 3 of you to get together and collude to set menu prices higher than if you competed with one another?

Would all of you make outsize profits as a result of this?

Please explain the reasoning.

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