In a cartel
A) each firm has an incentive to decrease its own production below the level set by the cartel.
B) the firms' marginal cost equals the price set by the cartel.
C) each firm has an incentive to lower its price below the level set by the cartel.
D) each firm has an incentive to raise its price above the level set by the cartel.
C
You might also like to view...
In colonial America, the average wage laborer
(a) received health care benefits, over-time pay and injury compensation. They also worked in safe and healthy environments. (b) achieved a standard of living significantly higher than those standards realized throughout the world. (c) possessed few labor rights, privileges and protections, while being denied the right to vote or organize. (d) had a higher standard of living than workers in Europe but lower health standards because of the rural, isolated conditions of colonial living.
What is a monopolist, and what is required for a monopolist to earn profits in the long run?
What will be an ideal response?
A Texas oil woman would like to increase the oil produced from her oil fields. Since it takes over a year to drill new wells, she opts instead for increasing labor and other variable inputs to produce more oil from existing wells. She is making a short-run production decision
a. True b. False Indicate whether the statement is true or false
A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false