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Author Question: When the market demand curve is relatively inelastic A) it is unrealistic for a cartel to form ... (Read 26 times)

melly21297

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on: Jul 1, 2018
When the market demand curve is relatively inelastic
 
  A) it is unrealistic for a cartel to form because profits will be lower.
  B) penalties for forming an illegal cartel will be relatively low.
  C) the lower the price the cartel sets, the greater the benefits to the cartel.
  D) the higher the price the cartel sets, the greater the benefits to the cartel.

Question 2

If a monopolist in the output market purchases its monopoly supplier of labor, consumers benefit.
 
  What will be an ideal response?


mceravolo

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

True. The firm now pays a competitive price for its labor instead of the monopoly price. This lower wage shifts the firm's marginal cost curve downward. The result is a lower price charged to consumers.


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melly21297

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Reply #2 on: Jul 1, 2018
Thank you


mceravolo

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Reply #3 on: Jul 1, 2018
No problemo


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