When does an oligopoly market result in a cartel? What conditions must be present for the cartel to be successful?
What will be an ideal response?
An oligopoly becomes a cartel when the firms in the market explicitly agree on production levels and prices. To work, demand for the product must be inelastic, and cartel members must follow the cartel rules.
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In examining consumer behavior, one of the constraints faced by consumers is
a. happiness b. quantities consumed c. tastes and preferences d. entrepreneurial ability e. income
Policymakers following a "lean against the wind" policy would
a. increase government expenditures when output is low and decrease them when output is high. b. increase government expenditures when output is low and do nothing when output is high. c. decrease government expenditures when output is low and increase them when output is high. d. decrease government expenditures when output is high and do nothing when output is low.