When members of an oligopolistic industry agree to collude, raising their product price substantially above average cost, the passage of time (months and years)
a. is usually needed for the members to solidify their cooperation.
b. usually results in finer control of prices and markets by the group and larger profit margins.
c. is likely to erode the agreement, as ways to cheat are developed by some participants and new entry is encouraged by the high price.
d. seldom has any impact on the agreement, as long as the participants maintain high profit levels as a result of the agreement.
C
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The law of supply reflects the negative relationship between the price of a good or service and the quantity of that good or service that sellers are willing to offer for sale
Indicate whether the statement is true or false
The current exchange rate system for most currencies is described most accurately as one of
A. fixed exchange rates. B. freely flexible exchange rates. C. gold standard rates. D. dirty or managed floating.
Which of the following is concerned with social regulation?
A) Federal Reserve Board B) Sherman Commission C) Food and Drug Administration D) Board of Education
When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. it is costless for employers to discriminate against groups they do not like. b. the wages of employees who are discriminated against will actually rise. c. an employer who discriminates will experience higher costs. d. discrimination by an employer will reduce production costs since the employer can pay lower wages.