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Author Question: Is collusion possible in monopolistic competition? Why or why not? What will be an ideal ... (Read 44 times)

appyboo

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on: Jun 29, 2018
Is collusion possible in monopolistic competition? Why or why not?
 
  What will be an ideal response?

Question 2

Moral hazard typically occurs because
 
  A) people are dishonest.
  B) agreements sometimes create incentives that are costly to monitor.
  C) workers possess diminishing marginal productivity.
  D) workers possess adverse selection.


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Meganchabluk

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Collusion is not possible in monopolistic competition. It is not possible because there are many firms in monopolistic competition, reaching an agreement to restrict output and boost price is impossible.

Answer to Question 2

B


appyboo

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

patma1981

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Reply 3 on: Yesterday
Gracias!

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