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

Author Question: What happens to the market outcome if cartel members cheat on the collusive agreement? A) Price ... (Read 83 times)

jilianpiloj

  • Hero Member
  • *****
  • Posts: 521
on: Jul 1, 2018
What happens to the market outcome if cartel members cheat on the collusive agreement?
 
  A) Price declines, but firm-level quantities remain the same because the firms act like price takers
  B) Price and quantity revert to the single-seller monopoly equilibrium outcome
  C) Other firms raise prices so that the average market price remains unchanged
  D) Price declines and quantity increases toward the perfectly competitive equilibrium

Question 2

A bilateral monopoly is characterized by a market with a single buyer and a single seller. Which factor is most likely to determine the market outcome in this situation?
 
  A) Share of total costs that are fixed
  B) Degree of demand elasticity
  C) Degree of supply elasticity
  D) Bargaining power of the firms


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juicepod

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

D


jilianpiloj

  • Member
  • Posts: 521
Reply 2 on: Jul 1, 2018
Wow, this really help

Sarahjh

  • Member
  • Posts: 370
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Species, subspecies, populations, and individuals. Species are reproductively isolated from one anot Species, subspecies, populations, and individuals. Species are reproductively isolated from one anot
All of the homes in this new neighborhood of Brentwood, California, are for sale, evidence of the co All of the homes in this new neighborhood of Brentwood, California, are for sale, evidence of the co
Alan Price - Poor People Alan Price - Poor People
With their specialized language and activities, surfers are highly recognized as members of a ... With their specialized language and activities, surfers are highly recognized as members of a ...
Members of Sierra Leonean Diaspora Community in London Members of Sierra Leonean Diaspora Community in London
Which outcome corresponds to the combination of copper(II) and sulfide ions shown in the ... Which outcome corresponds to the combination of copper(II) and sulfide ions shown in the ...
Video: Mitosis step-by-step

For a complete list of videos, visit our video library