This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Collusion makes firms better off because if they act as a single entity (a cartel) they can reduce ... (Read 531 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Oct 8, 2019

Collusion makes firms better off because if they act as a single entity (a cartel) they can reduce output and increase their prices and profits. But some cartels have failed and others are unstable. Which of the following is a reason why cartels often break down?


◦

Each member of a cartel has an incentive to "cheat" on the collusive agreement by producing more than its share when everyone else sticks with the collusive agreement.


◦

Most cartels do not have a dominant strategy.


◦

Members of a cartel may resent having to share their profits equally.


◦

When a cartel is profitable the amount of competition it faces increases.

InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Arii_bell on Oct 8, 2019

dajones82

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Oct 8, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 35% of students answer this correctly


Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Oct 8, 2019
:D TYSM

vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

During confrontations with others, the mane makes the lion look larger. During confrontations with others, the mane makes the lion look larger.
Transurethral resection of the prostate (TURP). As a treatment for BPH, part of the prostate gland i Transurethral resection of the prostate (TURP). As a treatment for BPH, part of the prostate gland i
Vasectomy. (a) Vas deferens is located within the spermatic cord on both sides. (b) A small incision Vasectomy. (a) Vas deferens is located within the spermatic cord on both sides. (b) A small incision
Single-Cell Model Single-Cell Model
How to combine two or more polynomial fractions into a single rational expression How to combine two or more polynomial fractions into a single rational expression
Amoeba, a single-celled heterotroph Amoeba, a single-celled heterotroph
Video: Bipolar Disorder

For a complete list of videos, visit our video library