All of the following are problems associated with maintaining a cartel except
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...
"When there is a shortage of loanable funds, the real interest rate will increase." Explain whether the previous statement is correct or not
What will be an ideal response?
Refer to Figure 4-2. What area represents producer surplus at a price of P1?
A) A + C B) A + C + E C) C D) C + E
Suppose you purchase a bottle of vitamin water with a price of $3. The price of $3 best reflects the function of money as a ________, and when you take $3 out of your wallet to purchase the bottle, money is functioning as a ________
A) medium of exchange; standard of deferred payment B) store of value; unit of account C) unit of account; medium of exchange D) medium of exchange; store of value
The Herfindahl-Hirschman index (also shortened to just the Herfindahl index) is a measure of ____
a. market concentration b. income distribution c. technological progressiveness d. price discrimination e. none of the above