In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then
A) each firm makes zero economic profit.
B) the outcome is identical to a monopoly.
C) the industry's economic profit is the maximum profit that can be made by the duopoly.
D) each firm makes a greater economic profit than it would make if it complied with the agreement.
A
You might also like to view...
If Turkey wants to promote faster economic growth, it will need to
A) promote government intervention to help markets determine incentives. B) restrict property rights so that individuals can better share inventions. C) promote incentive systems to encourage saving, research and development, increased trade and improved education. D) restrict economic freedom so the government has better control of markets. E) restrict international trade to protects its own workers.
The net effect of savings of the asset substitution, induced retirement, and bequest effects combined is that people save ________they would have without Social Security.
A. slightly less than B. the same as C. more than