Author Question: Cartels tend to break down unless they can obtain government assistance because cartel members will ... (Read 66 times)

kaid0807 · **on:** Jun 29, 2018

Cartels tend to break down unless they can obtain government assistance because cartel members will typically try to

A) charge higher prices than the prices agreed upon.
B) include sunk costs in their prices.
C) lower their costs below the agreed-upon levels.
D) sell more than their quotas.
E) do all of the above.

Question 2

Which of the following statements correctly differentiates between a monopoly and a perfectly competitive firm?

A) A perfectly competitive firm faces an upward sloping demand curve, whereas a monopoly faces a horizontal demand curve.
B) A perfectly competitive firm sets its product price at its marginal cost, whereas a monopoly sets the price above its marginal cost.
C) A perfectly competitive firm faces a horizontal demand curve, whereas a monopoly faces an upward sloping demand curve.
D) A perfectly competitive firm sets its product price above its marginal cost, whereas a monopoly sets its product price equal to its marginal cost.