Suppose That fiVe fiRms in an Oligopoly Formally Sign a Contract

question 2

Multiple Choice

Suppose that five firms in an oligopoly formally sign a contract to establish the price of the product in the market. In other words, they have _____.

• A) increased the elasticity of demand for the good
• B) increased the variety of the goods available to the consumer
• C) formed a cartel
• D) increased competition in the market

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Definitions:

Insurance Policies

Contracts between an insurer and a policyholder that provide financial protection against loss or damage in exchange for premium payments.

Paid Vacation

An employment benefit that allows employees to enjoy a certain amount of paid time off, providing them with rest and recreation without loss of income.

More Than 100 Employees

A classification indicating that a business has exceeded the threshold of 100 employees, often marking a shift in regulatory, operational, and human resource requirements.

Family And Medical Leave Act

A U.S. federal law that grants eligible employees unpaid, job-protected leave for specified family and medical reasons.