All of the following are problems associated with maintaining a cartel except
a. cartels are illegal.
b. a large amount of information is needed to coordinate a cartel.
c. profits are not maximized by a cartel so it will evolve into a monopoly.
d. each member of the cartel has an incentive to "chisel" by expanding output.
c
Economics
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The Keynesian short-run aggregate supply curve is horizontal because
A) it represents Say's law. B) it reflects wage and price inflexibility. C) it represents the full employment level of real GDP. D) it reflects the absence of money illusion.
Economics
Why is the pricing outcome of a perfectly competitive firm efficient in economic sense?
What will be an ideal response?
Economics