differentiate btw collusive and non collusive oligopoly - Economics - Non-Competitive Markets

Question

differentiate btw collusive and non collusive oligopoly?

Shvetika S. · Accepted Answer

The following points highlight the difference between collusive
oligopoly and non-collusive oligopoly

Collusive Oligopoly

Non-collusive Oligopoly

Under this form of oligopoly, firms might decide to collude
together and not to compete with each other

In this form of oligopoly, firms do not collude and instead compete
with each other

Under collusive oligopoly, the firms would behave as a single
monopoly and aim at maximising their collective profits rather than
their individual profits

Under non-collusive oligopoly, each firm aims at maximising its own
profits and decides how much quantity to produce assuming that the
other firms would not change their quantity supplied

Collusive Oligopoly	Non-collusive Oligopoly
Under this form of oligopoly, firms might decide to collude together and not to compete with each other.	In this form of oligopoly, firms do not collude and instead compete with each other.
Under collusive oligopoly, the firms would behave as a single monopoly and aim at maximising their collective profits rather than their individual profits.	Under non-collusive oligopoly, each firm aims at maximising its own profits and decides how much quantity to produce assuming that the other firms would not change their quantity supplied.