To Move the Allocation of Resources Closer to the Social

question 496

Multiple Choice

To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to

• A)collude with each other.
• B)form various degrees of cartels.
• C)compete rather than cooperate with each other.
• D)cooperate rather than compete with each other.

---

Definitions:

Trust and Confidence

The belief in the reliability, truth, and ability of someone or something, leading to a sense of security and assurance.

Duty of Loyalty

An obligation of employees or directors to act in the best interest of their company or shareholders.

Corporate Interests

Refers to the objectives and goals that are of prime importance to a corporation, typically aimed at maximizing profitability and sustainability.