If Joint Profits Are to Be Maximized in an Oligopolistic

question 5

Multiple Choice

If joint profits are to be maximized in an oligopolistic industry with a homogeneous product,the firms

• A)can produce whatever output they want at the agreed-upon price.
• B)need to determine the output each firm will produce.
• C)must form a cartel in order to be legal.
• D)have no individual incentive to cheat on the agreement.
• E)None of the above - differentiated products are required for joint-profit maximization in oligopoly.

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Definitions:

Pessimism

Pessimism is an attitude or mindset characterized by a tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Endorphins

The body’s own pain-killing chemicals, which operate by blocking the transmission of pain messages to the brain.

Inhibitory

Pertaining to a process that decreases the likelihood of a reaction occurring, often referring to neural signals in the brain that dampen activity.

Behavioral Activation System

A neurobiological system that influences an individual's motivation and ability to pursue and achieve goals, often associated with positive emotional states.