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 353 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
Thanks for the timely response, appreciate it

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

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
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
Births to Single Mothers Births to Single Mothers
#38.Genetically identical organisms derived from a single genetic source are #39 #38.Genetically identical organisms derived from a single genetic source are #39
Single-serve cups of infant formula Single-serve cups of infant formula
Testcross of a single character Testcross of a single character
Video: Coronary Heart Disease Animation

For a complete list of videos, visit our video library