Firms in a Cartel or Engaged in Tacit Collusion Should

question 53

Multiple Choice

Firms in a cartel or engaged in tacit collusion should set equal to to maximize profit.

• A)the market marginal revenue; their firm's marginal cost
• B)the market marginal revenue; the market marginal cost
• C)their firm's marginal revenue; the market marginal cost
• D)their firm's marginal revenue; their firm's marginal cost

---

Definitions:

Normative Influence

The impact of the social environment on individuals' behavior, where people conform to the expectations of a group to be liked, accepted, or to avoid disapproval.

Social Pressure

The influence exerted by society or social groups on individuals to conform to expected norms and behaviors.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which aimed to measure the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Maximum Level of Shock

The highest intensity of electric shock that can be safely administered in an experimental or clinical setting.