A) a Decrease in Profits, an Increase in Real Output

question 56

Multiple Choice

• A) a decrease in profits, an increase in real output, and a decrease in the unemployment rate.
• B) a decrease in profits, a decrease in real output, and a decrease in the unemployment rate.
• C) a decrease in profits, a decrease in real output, and an increase in the unemployment rate.
• D) an increase in profits, an increase in real output, and a decrease in the unemployment rate.

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Definitions:

Cartels

Organizations of producers or suppliers who collaborate to control production, pricing, and marketing of a product to maximize collective profits.

Cheat

To act dishonestly or unfairly in order to gain an advantage, especially in a game, exam, or competition.

Agreements

Arrangements or contracts between parties defining their rights, responsibilities, and relationships.

Kinked-Demand

A demand curve hypothesis in oligopolistic markets that explains why firms may not change their prices even when costs change, due to competitive reactions.