Close Windo Moving to another question wil save this response. Question 40 of 50

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Close Windo Moving to another question wil save this response. Question 40 of 50 Question 40 1 points Save The lime drinks industry and the cola drinks industry are both operating as oligopolies. The two firms in the lime drinks industry agree to form a cartel, while the three firms in the cola drinks industry are unable to come to an agreement. In the given scenario, which of the following statements is true? O a The producers of lime drinks will eventually have zero profits, while the producers of cola drinks have the profit levels of perfect competitors O b. The producers of lime drinks will have the profit levels of monopolistic competitors, while the producers of cola drinks will eventually have zero profits. O c. The prodacers of lime drinks will have profit levels like perfect competitors, while the producers of cola drinks will share monopoly profits. O d The producers of lime drinks will shar monopoly profis, while the prodacers of cola drinks will have profit levels typical of competion. Moing to another question will save this response. Question 40 of 5t Close Wind MacBook Pro F6 F7 F8 FYO

Explanation / Answer

d is the correct option

Reason

In case of a collusion between lemon-juice sellers, they can agree to produce monopoly level of output altogether to earn the maximum amount of profit and for the cola sellers, it will be same as the competition.

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