Suppose that the firms in an oligopolistic industry successfully collude. What will be the outcome? Explain
What will be an ideal response?
If a group of oligopolistic firms collude when setting price and output, the result would be exactly the same as if a monopolist controlled the industry. To maximize profit, the firms would produce where industry marginal revenue is equal to marginal cost.
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Pollution is an example of a ________ externality
A) negative production B) positive production C) negative consumption D) positive consumption E) Coasian
Using the Coase theorem, why might a firm that currently pollutes a river no one owns pollute the river less if it owned the river?
What will be an ideal response?
Ceteris paribus, a rise in interest rates in the United States will cause the yen price of the dollar in international exchange markets to ________. I.e., the dollar ________ in value against the yen
A) increase; depreciates B) decrease; depreciates C) decrease; appreciates D) increase; appreciates
A nation must have an absolute advantage in order to have a comparative advantage in producing a good or service
Indicate whether the statement is true or false