Two duopoly firms form a cartel. They decide to collude and fix the price of their good. Each individual firm will earn the highest profit if
A) it cheats and the other sticks with the agreement.
B) both stick with the agreement.
C) it sticks with the agreement and the other cheats.
D) they both cheat.
A
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Allocative efficiency refers to
A) producing the goods and services most highly valued. B) using the least amount of labor to produce output. C) producing the maximum possible amount of output. D) obtaining the least output with the most inputs. E) producing at any point on the PPF.
The break-even quantity is
a. 1250 b. 625 c. 416.67 d. 500
If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource
a. True b. False Indicate whether the statement is true or false
From a Keynesian viewpoint, the Phillips curve should slope ___________ so that higher unemployment means lower inflation.
a. down b. up c. perfectly vertical d. perfectly horizontal