Under which of the following market conditions is it most difficult to maintain a cartel agreement?
a. There are many firms in the industry and these firms have similar costs.
b. There are many firms in the industry and these firms have different costs.
c. There are few firms in the industry and these firms have similar costs.
d. There are few firms in the industry and these firms have different costs.
e. There are many firms in the industry and these firms produce homogeneous products.
B
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A truly voluntary exchange
A) has nothing to do with values, only with things. B) is always an exchange of equal values. C) is not an exchange of equal values. D) is usually an exchange of equal values.
Economists usually assume
a. that Americans' preferences are systematically different from Europeans b. that there are some features common to the preferences of a wide variety of people c. that everyone has the same preferences d. that everyone has the same preferences that they (the economists) do e. that individuals prefer to purchases goods rather than services