If an Oligopolist Is Part of a Cartel That Is

question 183

Multiple Choice

If an oligopolist is part of a cartel that is collectively producing the monopoly level of output,then that oligopolist has the incentive to lower production with the aim of

• A) lowering prices.
• B) increasing profits for the group of firms as a whole.
• C) increasing profits for itself, regardless of the impact on profits for the group of firms as a whole.
• D) None of the above is correct.

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Definitions:

Initiative

The ability to assess and initiate things independently without needing to be prompted by others.

Effect Change

To cause a significant difference or alteration in a situation or condition.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions such as triumph, despair, pride, and shame.

Self-worth

An individual’s perception of their own value or worthiness, often influencing their feelings of esteem and confidence.