The Fab Five, a cartel of five firms, sells a homogenous product. The Oct-Pool cartel is composed of eight firms that can differentiate their products. In the given scenario, which of the following statements is true?
a. The firms of both cartels are likely to cheat on their cartel agreements.
b. The firms of both cartels are unlikely to cheat on their cartel agreements.
c. The Fab Five cartel firms are likely to cheat on their cartel agreement, while the Oct-Pool cartel firms are unlikely to cheat on their cartel agreement.
d. The Oct-Pool cartel firms are likely to cheat on their cartel agreement, while the Fab Five cartel firms are unlikely to cheat on their cartel agreement.
d
You might also like to view...
The marginal product of capital is the increase in
A) capital needed to produce one more unit of output. B) output from a one-unit increase in capital. C) labor needed to accompany a one-unit increase in capital. D) output from a one-dollar increase in capital.
Consumption:
A. is the largest component of the U.S. GDP. B. is the value of total goods purchased by government. C. includes the price of new homes. D. is what households spend on food.
Compared to the rest of the world, the United States spends a larger percentage of its GDP on Social Security than any other country
Indicate whether the statement is true or false
Charging firms that emit pollutants is one way to deal with pollution
a. True b. False Indicate whether the statement is true or false