Enforcing a cartel agreement is Question 2 options: difficult because firms in t
ID: 1237961 • Letter: E
Question
Enforcing a cartel agreement isQuestion 2 options:
difficult because firms in the cartel have an incentive to cheat on the agreement.
difficult when there is only a few large firms making most of the economic profit.
best accomplished with an explicit contract detailing prices, output, and the division of profits.
best accomplished with an implicit contract detailing prices, output, and the division of profits.
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Question 3 (1 point)
If whatever one player in a game wins comes at the expense of the other player(s) in the game, this is
known as a:
Question 3 options:
positive-sum game.
zero-sum game.
negative-sum game.
Reactionary game.
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Question 4 (1 point)
What is the only market structure that does not have non-price competition?
Question 4 options:
Monopolistic competition.
Perfect Competition.
Oligopoly.
Monopoly.
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Question 5 (1 point)
One major difference between oligopoly and perfect competition is that:
Question 5 options:
Oligopolistic firms act interdependently while competitive firms operate independently.
There is no major difference in the two types of firms since they both act interdependently.
Oligopolistic firms act independently while competitive firms operate interdependently.
There is no major difference in the two types of firms since they both act independently.
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Question 6 (1 point)
Which of the following is not one of the conditions that make it more likely that firms will be able to coordinate their efforts to restrain output and detect cheating?
Question 6 options:
A small number of firms in the industry
Prices are easily observable.
Market demand tends to be volatile.
Firms in the industry produce nearly identical products.
Explanation / Answer
best accomplished with an explicit contract detailing prices, output, and the division of profits. zero-sum game. Oligopoly. A small number of firms in the industry
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