The Two Conflicting Tendencies That a Firm Has in an Oligopolistic

question 66

Multiple Choice

The two conflicting tendencies that a firm has in an oligopolistic industry are the incentive to

• A) cheat to maximize joint profits and the incentive to raise prices.
• B) cheat and avoid collusion and the incentive to raise price to maximize the firm's share of profits.
• C) increase output in order to minimize per-unit costs and the incentive to reduce price in order to maximize joint profit.
• D) cooperate to maximize joint profits and the incentive to cheat on the agreement in order to increase the firm's share of the profit.

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Definitions:

Roman Philosopher

A philosopher from ancient Rome who contributed to various fields of philosophy, including ethics, politics, metaphysics, and logic.

Virtue Prescription

Virtue prescription refers to the advocacy or recommendation of moral virtues as guidelines for ethical behavior and good living.

Generous

Showing a readiness to give more of something, especially money or time, than is strictly necessary or expected.

Charitable

Related to the act of giving help, especially financial support, to those in need.