Which one of the following factors reduces the likelihood that a cartel agreement will lead to higher producer profit?
a. significant barriers to entry into the cartelized market
b. the development of substitutes for the good produced by the cartel
c. government restrictions that limit competition from new rivals
d. a small number of sellers involved in the cartel agreement
B
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Most economists believe that convergence of GDP per capita ________ between developed nations and ________ between developing and developed nations
A) has not occurred; has occurred B) has occurred; has occurred C) has not occurred; has not occurred D) has occurred; has not occurred
A single-price monopoly causes a deadweight loss because it ________
A) restricts its output so it is less than the efficient quantity B) increases the amount produced beyond the efficient quantity C) maximizes marginal revenue rather than minimizes marginal cost D) increases marginal cost