What happens to the market outcome if cartel members cheat on the collusive agreement?
A) Price declines, but firm-level quantities remain the same because the firms act like price takers
B) Price and quantity revert to the single-seller monopoly equilibrium outcome
C) Other firms raise prices so that the average market price remains unchanged
D) Price declines and quantity increases toward the perfectly competitive equilibrium
D
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A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a
A) price ceiling. B) subsidy. C) tax. D) price floor.
________ natural resources are natural resources that can be used repeatedly, and ________ natural resources are natural resources that can be used only once
A) Nonrenewable; renewable B) Renewable; hydrocarbon C) Renewable; nonrenewable D) Non-fossil; fossil