Assess The Economic Desirability Of Collusive Pricing.

(Correct Answer Below)

Assess The Economic Desirability Of Collusive Pricing.

Collusive pricing is economically desirable from the oligopoly's viewpoint because it results in monopoly profits. Collusive pricing is economically desirable from society's viewpoint because it is a capital drain. Collusive pricing is not economically desirable from society's viewpoint because the price equals average total cost. Collusive pricing is not economically desirable from the oligopoly's viewpoint because it cannot control entry.
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Collusive pricing is economically desirable from the oligopoly's viewpoint because it results in monopoly profits.

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