In general, firms in a cartel:
A. agree to set price equal to marginal cost.
B. do not consider the actions of the other firms in the cartel when making output decisions.
C. produce levels of output exceeding the monopoly output level.
D. agree to charge the price the monopolist would charge.
Answer: D
You might also like to view...
The ratio at which nations will exchange one product for another is known as the
A. terms of trade. B. exchange rate. C. discount rate. D. balance of trade.
How does a natural monopoly differ from a firm that becomes a monopoly due to network effects?
What will be an ideal response?
An example of an intermediate good would be a(n)
A. paper used in this edition of the textbook. B. the appliance you use to heat up your lunch.. C. the used car you purchase. D. the suit you purchased on Black Friday and wore for New Year’s Eve.
Shows on broadcast TV, like ABC or NBC, are ________ and shows on cable TV, like MTV or HBO, are ________.
A. nonexcludable; excludable B. excludable; nonexcludable C. rival; nonrival D. nonrival; nonexcludable