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In a cartel, if oligopolists always match price cuts by other firms in the cartel, but do not match price increases, which of the following
In a cartel, if oligopolists always match price cuts by other firms in the cartel, but do not match price increases, which of the following is not a possible outcome? Select the correct answer below: If a firm does choose to increase its price, it will lose a considerable share of sales since customers will buy from other firms. None of the firms will have a strong incentive to change prices. O One firm in the cartel could lower its prices to attract customers from all of the other firms and then be the dominant firm. If a firm chooses to decrease its price in order to sell a greater quantity, potential gains will be minimal since competing firms will match the lower price right away
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