Tendency for oligopolists to cheat on collusive agreements

Assignment Help Business Economics
Reference no: EM131392740

1. There is strong tendency for oligopolists to cheat on collusive agreements because:

a. effective collusion rarely benefits any individual firm.

b. a cheater can benefit both when all the other parties abide by the agreement and when other parties also cheat.

c. when all firms abide by the agreement, the aggregate profits are reduced.

d. collusion is a form of marginal cost pricing, whereas most firms benefit when price is above marginal cost.

e. cheating is generally at the expense of the buyer and not the colluding sellers.

2. When there is demand-pull inflation, people's total spending in the economy will be falling.

a. True

b. False

Reference no: EM131392740

Compare perfectly competitive outcome with monopoly outcome

Assume that the potato chip industry in the Northwest in 2011 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return.

Short- and long-run effects of these fiscal adjustments

In 2015, the U.S. federal government increased government spending (G) by $56 billion. This question has you both illustrate and explain the short- and long-run effects of the

Suppose that congress imposes a tariff on imported autos

1. Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker   in

Given the demand and cost conditions

Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run

Advise gradualism or shock therapy

You are an economic advisor to a new leader of a country that is trying to transition from a command-and-control economy to a market-based economy. Would you advise "gradualis

Calculate the economic manufacturing quantity

The set-up cost per lot is estimated to be $40, and the manufacturing cost has been established at $5.20 per unit. Interest, insurance, taxes, space, and other holding costs

What is the equilibrium wage and rental rate for capital

Townville only produces Kale Pops and Krab Rings. Kale Pops are made using the technology Qkp= min (1/2K, L) and Krab Rings are made using a technology Qkr= min (k, 1/3L). Wha

Rental rate of capital coupled with no change in wage rate

Explain, using the isoquant-isocost diagram, why a rise in the rental rate of capital coupled with no change in the wage rate will lead to a rise in the price of the capital-i

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd