The correct answer is: C. Between that which would prevail under perfect competition, and that which a monopolist would choose in the same industry.
A collusive oligopoly is a market structure in which a small number of firms collude to restrict output and raise prices. This results in a lower level of output and a higher price than would prevail under perfect competition. However, the level of output and price will be higher than that which would prevail under a monopoly, since the firms in a collusive oligopoly still face some competition from each other.
A monopolistic competitor is a firm that faces a small number of competitors, but each firm’s product is differentiated from the others. This means that each firm has some market power, but it is not as great as the market power of a monopolist. As a result, a monopolistic competitor will produce a higher level of output and charge a lower price than a monopolist.
A monopolist is the only firm in an industry. This means that it has complete control over the market and can set the price of its product. As a result, a monopolist will produce a lower level of output and charge a higher price than would prevail under perfect competition or monopolistic competition.
In conclusion, a collusive oligopoly will produce a level of output that is between that which would prevail under perfect competition and that which a monopolist would choose in the same industry.