In Cartels, the Reason That the Monopoly Output Is Unstable

question 73

True/False

In cartels, the reason that the monopoly output is unstable is due to the factors that are present in a prisoner's dilemma.
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Definitions:

Production Function

An equation in mathematics that outlines how inputs correlate with the greatest output achievable from those inputs.

Supply Function

A mathematical relationship that describes the quantity of a good or service that producers are willing to sell at each possible price.

Long-Run Total Cost Function

An economic concept that describes how the total cost of production changes in response to changes in output over the long term, when all input factors can be varied.

Long-Run Supply Function

A representation of the relationship between the price of a good and the quantity supplied over a period where all factors of production are variable.