Collusion is undesirable and illegal because
A. Government intervention leads to inefficient outcomes.
B. It is unprofitable and the government must bail out firms that are bankrupted by collusion.
C. Resources are misallocated and the level of output is restricted.
D. It leads to greater production than would occur in a competitive market.
Answer: C
You might also like to view...
In the long run, in monopolistic competition
A) a firm's price equals its marginal cost. B) firms make an economic profit. C) firms make zero economic profit. D) Both answers A and C are correct.
A perfectly competitive firm may, under some circumstances, be able to affect the market price
a. True b. False Indicate whether the statement is true or false
What are the determinants of the potential output for an economy?
What will be an ideal response?
Advertising a brand can help create a reputation effect.
Answer the following statement true (T) or false (F)