The oligopoly dilemma is whether to ________
A. act together to restrict output and raise the price
B. raise the price to the monopoly profit-maximizing price
C. cheat on others in the cartel to take advantage of profit opportunities
D. lower the price to the perfectly competitive price
C Cheating on the others in the cartel will boost the cheater's profit as long as the other participants also do not cheat.
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The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because, without government intervention, ________ would be consumed and ________ would be produced
A) more than the efficient amount; more than the efficient amount B) more than the efficient amount; less than the efficient amount C) less than the efficient amount; more than the efficient amount D) less than the efficient amount; less than the efficient amount E) the efficient amount; the efficient amount
There is only one efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)
The dissolving of the _____________ in 1991 resulted in a "peace dividend" for the United States that enabled us to divert tens of billions of dollars a year from military spending to much more productive uses.
Fill in the blank(s) with the appropriate word(s).
A monopolist's marginal cost curve shifts up, but the firm's demand curve remains the same and the firm does not shut down. Compared to the condition before the increase in marginal costs, the monopolist will _____ its price and _____ its level of production.
A. raise; decrease B. not change; decrease C. lower; increase D. raise; increase