Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 10, Problem 7P
A
To determine
the reasons because of which some members of the OPEC may cheat on their cartel agreement.
(a) In case the less developed countries join as cartel members.
Concept Introduction:
A cartel is a group of firms that agree to coordinate their production and pricing decisions to reap
B
To determine
the reasons because of which some members of the OPEC may cheat on their cartel agreement.
(b) In case the members get doubled.
Concept Introduction:
A cartel is a group of firms that agree to coordinate their production and pricing decisions to reap monopoly profits.
C
To determine
the reasons because of which some members of the OPEC may cheat on their cartel agreement.
(c) In case the debts that are international grows up.
Concept Introduction:
A cartel is a group of firms that agree to coordinate their production and pricing decisions to reap monopoly profits.
D
To determine
the reasons because of which some members of the OPEC may cheat on their cartel agreement.
(d) In case the expectations of cheating members rise.
Concept Introduction:
A cartel is a group of firms that agree to coordinate their production and pricing decisions to reap monopoly profits.
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If south africa increased its production by 1,000 diamonds while russia stuck to the cartel agreement, south africa's profit would Increase or decrease .
Why are cartel agreement often not successful? choose on below:
a. one party has an incentive to cheat to make more profit.
b. different firms experience different cost
c. all parties would make more money if everyone increased production
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