A Market with Four Firms in Competition with Each Other

question 98

Multiple Choice

A market with four firms in competition with each other has a equilibrium price of $25 and equilibrium quantity of 200,000. If the four firms form a cartel, the cartel, set price will be ________than $25 and the set quantity will be________ than 200,000.

• A)greater; less
• B)less; greater
• C)greater; greater
• D)less; less

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Definitions:

Type of Earnings

Variations in the profits generated by a company, often categorized based on origin, such as operating or non-operating earnings.

Federal Income Taxes

Taxes levied by the government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date; it is a type of liability on the balance sheet.

Bond Payable

A long-term liability representing borrowed funds that the company is obligated to repay to bondholders at a specified future date.