Given an Oligopolistic Industry Characterized by a Collusive Agreement and Constant

question 27

Multiple Choice

Given an oligopolistic industry characterized by a collusive agreement and constant unit costs of production, which of the following statements is true?

• A)As the number of firms expands, the incentive to cheat on the collusive agreement increases.
• B)As the number of firms falls, aggregate output falls and aggregate profit rises.
• C)As the aggregate output rises, aggregate profit does not change.
• D)As the number of firms expands, aggregate output rises and aggregate profit falls.

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Definitions:

Pleural Cavity

The thin space between the lung and the chest wall, lined by pleural membranes, containing a small amount of lubricating fluid.

Pleuritis

An inflammation of the pleura, the thin tissue layers surrounding the lungs, causing sharp chest pain.

Pleura

The thin membranes enveloping the lungs and lining the inside of the chest cavity, which help facilitate smooth lung movement during breathing.

Difficulty Breathing

A sensation of not being able to draw a deep breath or experiencing shortness of breath; a symptom of various medical conditions.