When Oligopolists Collude and Act Like a Monopoly, They Charge

question 161

True/False

When oligopolists collude and act like a monopoly, they charge a price above marginal cost.When they act independently, they charge a price equal to marginal cost.

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Definitions:

Exit Mechanism

Strategies or processes that allow investors or business owners to withdraw from an investment or business operation, often seen in the context of startups or financial markets.

Blacklisting

The practice of compiling lists of people or entities to be denied a particular privilege, service, or recognition, often used in labor disputes to exclude workers.

Strikes

Work stoppages initiated by employees to protest against labor conditions, policies of their employers, or to demand higher wages and benefits.

Lockouts

A labor relation strategy where employers prevent employees from working during a dispute, typically to enforce terms of employment.