Author Question: Firms in monopolistic competition have rivals that A) match their price increases. B) match ... (Read 104 times)

swpotter12 · **on:** Jun 29, 2018

Firms in monopolistic competition have rivals that

A) match their price increases.
B) match their price decreases.
C) agree on a common price.
D) set their prices according to the demand curves they face.

Question 2

Once a cartel determines the profit-maximizing price

A) each firm faces the temptation to cheat by raising its price.
B) each firm faces the temptation to cheat by lowering its price.
C) changes in the output of any member firm will not affect the market price.
D) entry into the industry by rival firms will not affect the profit of the cartel.