Which of the following is NOT conducive to the successful operation of a cartel?
A) Market demand for the good is relatively inelastic.
B) The cartel supplies all of the world's output of the good.
C) Cartel members have substantial cost advantages over non-member producers.
D) The supply of non-cartel members is very price elastic.
D
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The fact that since 1990 the number of movie screens in the United States has grown faster than the number of theaters illustrates the benefits of
a. economies of scale b. constant long-run average cost c. diseconomies of scale d. increasing long-run average cost e. a U-shaped marginal cost curve
An important difference between a perfectly competitive market and a monopolistically competitive market is that, in the latter,
a. there are more sellers of the good b. there are only a few large sellers c. there are no barriers to entry or exit d. there is only one seller of the good e. the product is not standardized