In the oligopoly price-fixing game, the payoffs are the

A. reputations of the firms.

B. sales of the firms.

C. profits of the firms.

D. market shares of the firms.

• In the oligopoly price-fixing game, the payoffs are the C. profits of the firms.

The aim of the companies is to maximize profit. In the price-fixing game, some companies may suffer loss because they have to follow mutually agreed norms. Oligopolistic firms always try to maximize their profit.

• Reputation is the wrong option because this is not quantitative and hence cannot be measured.
• The sale is not the correct option because the sale is only considered when the cost is very low and the margin is high. So the sale is not a considerable factor in the absence of cost and margin.
• Market share is a wrong option because, in the oligopoly, every company has a high market share, and hence it is not the main payoff.