The Paradoxical Nature of Oligopoly Can Be Demonstrated by the Fact

question 398

Multiple Choice

The paradoxical nature of oligopoly can be demonstrated by the fact that, even though the monopoly outcome is best for the oligopolists,

• A)they collude to set the output level equal to the Nash equilibrium level of output.
• B)they have incentives to increase production above the monopoly outcome.
• C)they do not behave as profit maximizers.
• D)self-interest juxtaposes the profits earned at the Nash equilibrium.

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Definitions:

NLRA

The National Labor Relations Act of 1935, a foundational statute in United States labor law that protects the rights of employees to organize, bargain collectively, and strike.

Union Election

A formal voting process through which workers choose whether to be represented by a union and, if so, which union will represent them in bargaining with their employer.

Union Instrumentality

The means or methods through which a labor union seeks to protect the interests of its members, such as collective bargaining and industrial action.

Job Dissatisfaction

A negative emotional state resulting from an individual’s perception of their job not meeting their expectations or needs.