Colluding oligopolists face a conflict between maximizing joint market profit or their own market share.
Answer the following statement true (T) or false (F)
True
Oligopolies' joint, or collective, interest is in maximizing industry profit. The individual interest of each oligopolist, however, is to maximize its own share of sales and profit. Obviously these goals may conflict.
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The fact that business cycles are recurrent but not periodic means that
A) business cycles occur at predictable intervals, but do not last a predetermined length of time. B) the business cycle's standard contraction—trough—expansion—peak pattern has been observed to occur over and over again, but not at predictable intervals. C) business cycles occur at predictable intervals, but do not all follow a standard contraction—trough—expansion—peak pattern. D) business cycles last a predetermined length of time, but do not all follow a standard contraction—trough—expansion—peak pattern.
The Gini co-efficient is the:
a. area between the Lorenz curve and the vertical axis divided by the area under the Lorenz curve. b. area between the Lorenz curve and the horizontal axis divided by the area above the Lorenz curve. c. area between the Lorenz curve and the line of perfect equality divided by the total area under the line of income equality. d. area between the Lorenz curve and the line of perfect equality divided by the total area above the line of perfect equality. e. area between the line of perfect equality and the horizontal axis divided by the area between the Lorenz curve and the horizontal axis.
Assume an Australian importer expects to pay 16,000 Australian dollars (AUD) for $8,000 worth of U.S. goods, but on the shipment date 30 days later, the same volume of U.S. goods costs the Australian importer only 10,000 Australian dollars. This means that between the contract date and the payment date, the exchange rate has changed:
a. from $1 = 1.25 AUD to $1 = 2.0 AUD. b. from $1 = 2.0 AUD to $1 = 1.25 AUD. c. from $1 = 0.8 AUD to $1 = 0.5 AUD. d. from $1 = 0.5 AUD to $1 = 0.8 AUD. e. from $1 = 0.5 AUD to $1 = 2.0 AUD.
The notion that trade policy often imposes costs on large numbers of people, and benefits only a few is explained by
A. the basic impossibility of the democratic system to reach a fair solution. B. the problem of collective action. C. the power of advertisement. D. the lack of political involvement of the public.