differentiate btw collusive and non collusive oligopoly?
The following points highlight the difference between collusive oligopoly and 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.