When Oligopolies Act Jointly as a Monopoly, They Are Acting

question 88

Multiple Choice

When oligopolies act jointly as a monopoly, they are acting as a

• A) contestable market.
• B) monopolistically competitive market.
• C) cartel.
• D) monopsony.

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Definitions:

Binding Price Floors

Legally established minimum prices for goods or services that are above the market equilibrium, leading to surpluses.

Rationing Mechanisms

Methods used to distribute scarce goods or resources among competing users.

Efficient

Achieving maximum productivity with minimal wasted effort or expense, often used in the context of production and allocation of resources.

Supply Of Labor

The total number of workers willing and able to work in an economy, including both employed and unemployed individuals actively seeking jobs.