A Profit-Maximizing Cartel Will Make Pricing and Output Decisions as If

question 67

Multiple Choice

A profit-maximizing cartel will make pricing and output decisions as if it is:

• A) perfectly competitive.
• B) monopolistically competitive.
• C) an oligopoly.
• D) a monopoly.

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Definitions:

Diversification Effects

The reduction in risk achieved by investing in a variety of assets, thus minimizing the impact of poor performance from any single asset.

Portfolio A

A specific collection of financial assets such as stocks, bonds, cash equivalents, and their mutual funds, owned by an individual or an institutional investor.

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.

Variance

A measure of the distribution’s variability. It is the sum of the squared deviations about the expected value.