Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
A) An increase in the number of potential entrants into the industry.
B) A decrease in the elasticity of demand for the cartel's product.
C) An increase in the number of substitutes for the product produced by the cartel.
D) A new method of pricing that makes it more difficult for each firm to monitor the prices that the other firms in the cartel are charging.
B
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The figure above illustrates a linear demand curve. If the price falls from $8 to $6
A) total revenue increases. B) total revenue decreases. C) total revenue remains unchanged. D) the quantity demanded increases by less than 20 percent.
Define the following terms and explain their importance to the study of economics. a. public good b. externality c. irreversible decision d. moral hazard e. rent seeking
What will be an ideal response?