When a group of firms collude with one another to produce at a monopoly output and sell at a...
Question:
When a group of firms collude with one another to produce at a monopoly output and sell at a monopoly price, you have:
a. a pensioner's dilemma.
b. a cartel.
c. monopolistic competition.
d. a duopoly.
Monopoly and Anti-Trust Regulations:
A monopoly is a market situation where a single firm sells the dominant share of the goods and services in the market. In most developed countries there are regulations that restrict monopolies and monopolistic behavior, which are known as anti-trust regulations. These rules are often difficult to prove, but seek to prevent a single firm from keeping out competitors. Anti-trust law can be used to regulate firms and also to even break up the company into several smaller companies.
Answer and Explanation: 1
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View this answerThe answer is b. a cartel. This is the definition of a cartel in economics. Collusion is the practice of rival firms restricting quantity or...
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Cartel in Economics | Definition, Types & Examples
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Chapter 4 / Lesson 8
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What is a cartel in economics? Understand the definition of cartel and its significance in business and market structures using relevant examples.
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