Which would make it easier to maintain an effective collusive agreement in a cartel?
A. The emergence of a number of potential entrant firms.
B. A new method of pricing that makes it more difficult for firms in the cartel to determine the prices at which other cartel members are selling their product.
C. A decrease in the elasticity of demand for the cartel's product.
D. An increase in the number of substitutes for products produced by the cartel.
Answer: C
You might also like to view...
A ________ is a payment or a tax break used as an incentive for an agent to complete an activity
A) tariff B) subsidy C) wage D) rent
People who buy futures on the commodity market are
A) increasing, not reducing, their personal risk. B) reducing, not increasing, their personal risk. C) either reducing or increasing their personal risk, depending on the circumstances. D) creating added risk for others in society. E) showing they are essentially indifferent to risk.
In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, the deadweight loss to society is
A) zero. B) efc. C) ebc. D) gac.
Explain how price expectations can affect the supply of a product
What will be an ideal response?