Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem 2MCQ
If firms in oligopoly form a cartel, it will likely break down because ____________ .
A. firms cannot agree on how to share the economic profit
B. the
C. with price exceeding marginal cost, a firm might expand production to increase its profit
D. firms realize that their allocation of resources is inefficient
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Answer d please
The table shows the demand schedule for a particular product.
Quantity
Price
0
100
300
90
600
80
900
70
1200
60
1500
50
1800
40
2100
30
2400
20
2700
10
3000
0
Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quantity in this market. If the marginal cost to produce this product is constant at $40 per unit, then what price will the cartel set in this market?
a. $40 b. $50 c. $60 d. $70 e. $80
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
Chapter 18 Solutions
Foundations of Economics (8th Edition)
Ch. 18 - Prob. 1SPPACh. 18 - Prob. 2SPPACh. 18 - Prob. 3SPPACh. 18 - Prob. 4SPPACh. 18 - Prob. 5SPPACh. 18 - Prob. 6SPPACh. 18 - Prob. 7SPPACh. 18 - Prob. 8SPPACh. 18 - Prob. 1IAPACh. 18 - Prob. 2IAPA
Ch. 18 - Prob. 3IAPACh. 18 - Prob. 4IAPACh. 18 - Use this information to work Problems 5 to 7. DOJ...Ch. 18 - Use this information to work Problems 5 to 7. DOJ...Ch. 18 - Prob. 7IAPACh. 18 - Which of the following statements is incorrect. In...Ch. 18 - If firms in oligopoly form a cartel, it will...Ch. 18 - Prob. 3MCQCh. 18 - Prob. 4MCQCh. 18 - Prob. 5MCQCh. 18 - Prob. 6MCQCh. 18 - Prob. 7MCQ
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