Question

Which of the following are advantages that firms could gain by working together as if were a monopoly?

A. Firms can charge a higher price.
B. Firms can increase industry productivity.
C. Firms can hold down industry output.

Answer 1

A. Firms can charge a higher price.

C. Firms can hold down industry output.

Step-by-step explanation:

As we know that

There is only one seller in the monopoly market which determinant of the overall market. The vendor demanded the heavy price and there's no competition because of this. This market contains free to enter and exit

so the first option satisfy this condition also it hold down the output of an industry

Therefore the option A and C is correct

Hence, the option B is incorrect