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 530 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
Wow, this really help

ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Reduce Risk of Unintentional Injury Reduce Risk of Unintentional Injury
Withdrawing Medication from Single-Dose or Multiple-Dose Vials Withdrawing Medication from Single-Dose or Multiple-Dose Vials
A properly mounted 12-lead, single channel ECG. A properly mounted 12-lead, single channel ECG.
A typical ratchet used to rotate a socket. A ratchet makes a ratcheting noise when it is being ... A typical ratchet used to rotate a socket. A ratchet makes a ratcheting noise when it is being ...
Using a water-based cleaning system helps reduce the hazards from using strong chemicals. Using a water-based cleaning system helps reduce the hazards from using strong chemicals.
Conformations of single-stranded nucleic acids Conformations of single-stranded nucleic acids
Video: Conjunctivitis

For a complete list of videos, visit our video library