Macroeconomics

Which of the following would make it easier to maintain an effective c

Which of the following would make it easier to maintain an effective collusive agreement in a cartel? A) An increase in the number of potential entrants into the industry. B) A decrease in the elasticity of demand for the cartel’s product. C) An increase in the number of substitutes for the product produced by the […]

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Date: September 10th, 2020

Which of the following statements regarding cartels is not correct? A

Which of the following statements regarding cartels is not correct? A) Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price. B) Cartels restrict industry output in order to raise price. C) Cartels are inherently stable, because oligopolistic firms rarely change price. D) are easier to […]

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Date: September 10th, 2020