The Fact That the Prices Consumers Pay for Branded Breakfast

question 3

Multiple Choice

The fact that the prices consumers pay for branded breakfast cereals are above the prices that would exist if there were true competition suggests that the cereal manufacturers are engaging in:

• A) excessive cooperation.
• B) joint ventures.
• C) tacit collusion.
• D) horizontal strategic alliances.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price.

Output Price

The cost at which goods or services are offered for sale in the marketplace.

Graduate School

An advanced academic institution providing postgraduate education in various disciplines, leading to degrees like Master's or Doctorate.

Factor Of Production

An essential input to the production process, such as labor, capital, land, and entrepreneurship.