« previous next »

Author Question: Why do firms in oligopoly face a temptation to collude? What will be an ideal ... (Read 84 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Why do firms in oligopoly face a temptation to collude?
 
  What will be an ideal response?

Question 2

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve. As a result
 
  A) both the equilibrium price and quantity of MP3 players will decrease.
  B) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
  C) both the equilibrium price and quantity of MP3 players will increase.
  D) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


kilada

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

Firms in oligopoly face the temptation to collude because if they can successfully collude, they can boost their economic profit.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Vapocoolant spray application while passively stretching the paracervical muscles. Take care to prot Vapocoolant spray application while passively stretching the paracervical muscles. Take care to prot
Neanderthal Expressive Culture: “Face” in Worked Flint Neanderthal Expressive Culture: “Face” in Worked Flint
In the box on upward social mobility on page 82, we discussed how Latinos face a similar situation. ... In the box on upward social mobility on page 82, we discussed how Latinos face a similar situation. ...
Apply effleurage to face with palms. Place the hands gently on the face with fingertips at the jaw. ... Apply effleurage to face with palms. Place the hands gently on the face with fingertips at the jaw. ...
Competitive firms and maximization Competitive firms and maximization
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately
Video: Cell mediated immune response to a viral infection Animation

For a complete list of videos, visit our video library