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So I know that the tobacco industry is an example of a Oligopoly market structure. Do...

So I know that the tobacco industry is an example of a Oligopoly market structure. Do the firms in this market operate as a cartel to determine price, quantity, and quality?

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If tobacco industry is an oligopoly industry then there is a chance that they might operate as a cartel because there are only few players in the industry as a result of which there would be no competition among themselves and this can result in cartel formation of the firms as a result of which the quantity will be less than the optimal quantity and the price increases due to which the profits for the firms increases and also there can be a chance that the quality decreases because they are not focusing on the quality due to the collusion due to reduction in competition levels.

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