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 533 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

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Environmental influences on the expression of PKU within a single family Environmental influences on the expression of PKU within a single family
Many human diseases are caused by mutations in single genes Many human diseases are caused by mutations in single genes
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
Withdrawing Medication from Single-Dose or Multiple-Dose Vials Withdrawing Medication from Single-Dose or Multiple-Dose Vials
Examples of Human Disorders Caused by Single-Gene Mutations Examples of Human Disorders Caused by Single-Gene Mutations
Homologous recombination: single versus double crossovers Homologous recombination: single versus double crossovers
Video: What is Reverse Osmosis?

For a complete list of videos, visit our video library