Author Question: With barriers to the entry of new firms A) a cartel is guaranteed to earn an economic profit ... (Read 84 times)

Engineer · **on:** Jun 29, 2018

With barriers to the entry of new firms

A) a cartel is guaranteed to earn an economic profit greater than zero.
B) a cartel's members have no incentive to cheat.
C) the cartel will likely earn an economic profit greater than zero.
D) industry supply will expand if the firms form a cartel.

Question 2

In the above figure, the slope across the arc between a and b is

A) 2/5.
B) 1.
C) 3/2.
D) 5/2.