« previous next »

Author Question: Why do firms in oligopoly face a temptation to collude? What will be an ideal ... (Read 71 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Why do firms in oligopoly face a temptation to collude?
 
  What will be an ideal response?

Question 2

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve. As a result
 
  A) both the equilibrium price and quantity of MP3 players will decrease.
  B) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.
  C) both the equilibrium price and quantity of MP3 players will increase.
  D) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


kilada

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 29, 2018
Answer to Question 1

Firms in oligopoly face the temptation to collude because if they can successfully collude, they can boost their economic profit.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

The face of a caterpillar with the mouthparts showing The face of a caterpillar with the mouthparts showing
Face from flowers Face from flowers
In Chuck Close's portrait, the face is quite recognizable when viewed from a distance. Close ... In Chuck Close's portrait, the face is quite recognizable when viewed from a distance. Close ...
Ben Jones, Black Face and Arm Unit. Ben Jones, Black Face and Arm Unit.
Muscles of the head, neck, and face. Muscles of the head, neck, and face.
Major muscles of the face and head. Major muscles of the face and head.
Video: Cavernous Sinus Larynx Middle Ear Orbit: Granulesm Animation

For a complete list of videos, visit our video library