Under the cartel model, each firm produces where a. marginal ...

[HCHenry]

Under the cartel model, each firm produces where
 a. marginal cost equals marginal revenue.
  b. price equals marginal cost.
  c. the average cost curve is at a minimum.
  d. price exceeds marginal cost by the greatest amount.

Question 2

In the cartel model
 a. firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products.
  b. each firm acts as a price taker.
  c. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.
  d. firms coordinate their decisions to act as a multiplant monopoly.

[chem1s3]

Answer to Question 1

a

Answer to Question 2

d

[HCHenry]

Thank you

[chem1s3]

No problemo