After participating members of a cartel form an agreement on common prices and output quotas, then an individual firm can increase its own profits by
A) decreasing production.
B) decreasing prices.
C) advertising.
D) paying its employees higher wages.
Answer: B
Economics
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An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Economics
If the shut down rule, p < AVC, is the same in the short run and the long run, explain why the shutdown prices may be different
What will be an ideal response?
Economics