When Firms in an Oligopoly Successfully Collude and Do Not

question 162

Multiple Choice

When firms in an oligopoly successfully collude and do not cheat on a cartel agreement,they can make a long-run economic profit similar to

• A) perfect competition.
• B) monopoly.
• C) monopolistic competition.
• D) non-colluding oligopolies.
• E) the firms in regulated industries.

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Definitions:

Mutual Funds

Mutual funds are investment vehicles that pool money from numerous investors to purchase a diversified portfolio of stocks, bonds, or other securities.

U.S. Treasury Bonds

Long-term debt securities issued by the United States Department of the Treasury with a maturity of more than ten years.

Equity Mutual Fund

A corporation that pools the funds of investors, including small investors, and uses them to purchase a bundle of stocks.