When the market demand curve is relatively inelastic
A) it is unrealistic for a cartel to form because profits will be lower.
B) penalties for forming an illegal cartel will be relatively low.
C) the lower the price the cartel sets, the greater the benefits to the cartel.
D) the higher the price the cartel sets, the greater the benefits to the cartel.
D
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At any price below the equilibrium price, the: a. demand is greater than supply
b. supply is greater than demand. c. quantity demanded is greater than quantity supplied. d. quantity supplied is greater than quantity demanded.
Monopolistic competition is different from perfect competition in that every manufacturer
A. has a small monopoly, and differentiates the product. B. takes the product quality as given, and chooses price. C. takes output level as given, but must choose price. D. differentiates product, but cannot advertise successfully.