A cartel can be sustained in the long run A. if the long-run market supply curve is inelastic. B. as long as firms can easily exit the market. C. as long as firms don't price discriminate to help produce more output. D. if cartelized firms can be stopped from following their individual incentives to produce more than agreed by the cartel.

A cartel can be sustained in the long run A. if the long-run market supply curve is inelastic. B. as long as firms can easily exit the market. C. as long as firms don't price discriminate to help produce more output. D. if cartelized firms can be stopped from following their individual incentives to produce more than agreed by the cartel.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 18CTQ: When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that...

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mether to produce a low output or a high output. nese output strategies with corresponding profits are depicted in the ayoff matrix to the right. Kuwait's profits are in red and Saudi Arabia's are in blue. Suppose the two countries form a cartel. What is the cooperative equilibrium? Kuwait O A. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a high output. Low Output High Output O B. A cooperative equilibrium does not exist for this game. $125 $75 Low Output O C. The cooperative equilibrium is for Saudi Arabia to produce a low output and Kuwait to produce a high output. $8 $13 Saudi Arabia O D. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a low output. $98 $70 E. The cooperative equilibrium is for Saudi Arabia to broduce a low output and Kuwait to produce a low output. High Output What is the Nash equilibrium for this game? O A. The Nash equilibrium is for Saudi Arabia to produce a high…
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