Which of the following best describes a cartel?
a. A group of cooperating oligopolists that jointly reduce output and raise price in imitation of a monopolist. When entry is very costly, these high prices can persist.
b. A group of monopolistically competitive firms that jointly reduce output and raise price in imitation of a monopolist. When entry is very costly, these high prices can persist.
c. A monopolist that reduces output and raises price. When entry is very costly, these high prices can persist.
d. A group of identical non-cooperative oligopolists that is able to reproduce a monopoly equilibrium through price rivalry.
a
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The decision about whether a firm in each particular industry must operate as a proprietorship, partnership, or corporation is made by the Internal Revenue Service
Indicate whether the statement is true or false
Describe two useful purposes served by speculators in derivatives markets
What will be an ideal response?
If the income tax system were indexed, a person whose nominal income went up from $30,000 to $33,000 in a year when the price index rose by 10 percent would pay
A. no increases in nominal income taxes. B. no increases in real income taxes. C. lower taxes in both real and nominal terms. D. higher taxes in both real and nominal terms.
Sophia has a business using no owned capital and makes an accounting profit of $52,000 a year. Sophia could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Sophia's business per year is
a. $87,000. b. $35,000. c. $17,000. d. -$17,000.