In imperfectly competitive industries, producers' agreements to restrict output tend to be unstable because each firm has an incentive to:
A. establish competitive price and output levels.
B. lower both its price and its output.
C. produce more than its output quota.
D. raise prices above the cooperative price.
Answer: C
You might also like to view...
If the prices of goods begin to rise rapidly, people may find it difficult to maintain their lifestyles. Explain why
What will be an ideal response?
In the United States, currency includes
A) paper money and coins in circulation. B) checking and savings account deposits. C) gold, silver, and paper money. D) traveler's checks.
The supply-demand mechanism will bring an international market into equilibrium
a. at a price below the domestic price. b. where domestic supplies are less than domestic demand. c. with one nation's price higher than the other nation's price. d. when the quantity demanded for exports is equal to quantity supplied.
Kelly is willing to pay $5.20 for a gallon of gasoline. The price of gasoline at her local gas station is $3.80 . If she purchases ten gallons of gasoline, then Kelly's consumer surplus is
a. $1.40. b. $14. c. $3.80. d. $52.