The firms in an oligopoly market structure agree to collude because:
a. it helps them to earn more profits.
b. each firm wants to know the strategy of its rivals.
c. each firm wants to charge a lower price for its product than its rivals.
d. the firms want to maintain a healthy relationship with each other.
e. it helps them to enjoy economies of scale.
a
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For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment
In the long run, the responsiveness of demand for business equipment with respect to income changes tends to be: A) even more responsive. B) less responsive. C) equally responsive. D) none of the above
The poor are those who fall too far behind the average income. This refers to the ____ definition of poverty
a. marginal b. absolute c. relative d. threshold
Labor productivity is calculated by dividing GDP by
a. population. b. the price level. c. capital stock d. labor force.
The accompanying graph shows the long-run supply and demand curves in a purely competitive market. We know that when this market reaches equilibrium, the marginal
a) cost equals marginal benefit. b) benefit exceeds marginal cost. c) cost exceeds marginal benefit. d) cost equals zero.