单选题 Compared with outcomes that result from collusion, independent action by companies operating in an oligopolistic industry would tend to decrease:

A、

A. output but not prices.
B、

B. prices but not output.
C、

C. both output and prices.

【正确答案】 B

【答案解析】By colluding with rivals, oligopolists are able to replicate monopolistic industry conditions, and maximize industry profits. Oligopolists face two conflicting tendencies-the incentive to collude with rivals, so that industry profits can be maximized, and the incentive to cheat on any collusive agreement so that their own firm's profits can be maximized.