What quantity of output and price do they try to set, when a group of oligopoly firms form a cartel? Will there be any changes in the price and quantity supplied if the cartel gets broken down?
By forming cartels, oligopoly firms try to set monopoly price and quantity of output. When cartels break down, quantity of output supplied increases and the market price falls.
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People who are not currently employed but say they want a job are counted as unemployed only if they: a. have previously held a job
b. are actively seeking employment. c. are discouraged workers. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.
Structural unemployment occurs when: a. there are changes in the business cycle
b. there are fundamental changes in the nature of the economy. c. workers are moving between jobs. d. workers have given up looking for a job because they are discouraged about their prospects.
In the case of a small country, producer surplus
A) increases more with a tariff than with an equivalent quota. B) increases more with a quota than with an equivalent tariff. C) is not changed by tariffs or quotas. D) increases the same amount with tariffs and equivalent quotas.
Pure economic rent involves situations where
A. the quality of a resource can be varied but the price cannot be varied. B. the supply curve is perfectly inelastic. C. the supply curve is perfectly elastic. D. the uses to which a resource can be used can be varied but the quality of the resource cannot be varied.