Author Question: Which of the following explains how a cartel with 100 percent control might raise price to ... (Read 118 times)

berenicecastro · **on:** Jun 30, 2018

Which of the following explains how a cartel with 100 percent control might raise price to monopoly-like levels?
a. By setting a group output level equal to a profit-maximizing monopolist, and then assigning binding quota shares to cartel members.
b. By setting an official price that members can secretly undercut.
c. By forbidding price competition, but allowing non-cooperative rivalry in output levels.
d. None of the above.

Question 2

The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The entire curve.
b. The downward-sloping segment only.
c. The upward sloping segment only.
d. The point where labor input is zero.