Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits.
b. the cartel price is the competitive price.
c. each member's output quota is too high.
d. each member's MR is not equal to the cartel's MC.
e. the industry profit would be higher under competitive conditions.
d
Economics
You might also like to view...
If the marginal propensity to save is 0.25, then a $10,000 decrease in disposable income will
A) increase consumption by $7,500. B) decrease consumption by $2,500. C) increase consumption by $2,500. D) decrease consumption by $7,500.
Economics
The legislature is equivalent to a political market because _____
a. legislators are akin to price takers b. policies can be bought and sold c. legislators can be bought and sold d. logrolling allows legislators to trade amongst themselves
Economics