Some automobile owners will drive faster knowing that they are covered by health and automobile insurance. This behavior creates the problem of

Refer to Figure 16-6. Suppose instead of charging the monopoly price for his classes, Sensei charges the competitive price. What is the competitive price and what is the quantity demanded at this price?

A) P1, Q0 B) P0, Q1 C) P1, Q1 D) P0, Q0

Which of the following is true of a successful cartel?

a. A successful cartel offers consumers the lowest possible price for a product. b. A successful cartel minimizes profits for its members. c. A successful cartel behaves as a monopolist in the market. d. A successful cartel produces a quantity greater than that produced in a competitive market. e. A successful cartel is always stable.