All of the following are problems associated with maintaining a cartel except that:
a. cartels are illegal.
b. a large amount of information is needed to coordinate a cartel.
c. profits are not maximized by a cartel so it will evolve into a monopoly.
d. each member of the cartel has an incentive to "chisel" by expanding output.
c
You might also like to view...
________ is the market value of production generated by the factors of production possessed or owned by the residents of a particular nation
A) Gross domestic product B) Total Market Value C) Gross National Product D) Net domestic product
A factory produces 1,000 radios a year, AVC = $10 and TFC = $5,000. The factory’s TC
A. equals $15. B. equals $5,005. C. equals $15,000. D. cannot be determined from the information given.
What policy shifts the aggregate demand curve the farthest leftward?
What will be an ideal response?
Refer to the data provided in Table 9.2 below to answer the question(s) that follow.
Table 9.2
Refer to Table 9.2. The market price is $42 and this firm is producing four units of output. Which of the following would you recommend to this firm?
A. Increase output to six units so that marginal cost equals marginal revenue. B. Reduce price to $17 so that marginal cost will equal marginal revenue at 4 units of output. C. Increase output to seven units so that price is less than marginal cost. D. Continue producing four units of output, because the firm is able to make an economic profit.