Oligopolists Collude in Order To_____

question 47

Multiple Choice

Oligopolists collude in order to_____.

• A) minimize the social cost of production
• B) earn monopoly pro?ts
• C) maximize the quantity of output produced
• D) increase production costs

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Definitions:

Deadweight Losses

Economic inefficiencies that occur when equilibrium in a market is not achieved or when market allocation of resources is not optimal, often due to externalities or government intervention.

Consumer Surplus

A rephrased definition: The economic benefit that consumers receive when they can purchase a product for less than the maximum price they are willing to pay.

Consumer Surplus

The gap between the overall sum consumers are ready and able to spend on a product or service and what they really spend.

Cognitive Dissonance

A psychological discomfort experienced when simultaneously holding two or more conflicting beliefs, ideas, or values.