Boeing and Airbus Have Entered into a Cartel Agreement That

question 22

Multiple Choice

Boeing and Airbus have entered into a cartel agreement that will enable them to boost their profits.What occurs if Boeing decides to cheat on the agreement?
i.Boeing lowers the price of its airplanes.
ii.The total industry output increases.
iii.The total profits in the airplane industry will decrease.

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i, ii, and iii

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Definitions:

Exports

Goods or services sent from one country to another for sale or trade.

Imports

goods or services brought into one country from another for sale, often influencing the domestic market's supply and price levels.

Trade Surplus

This occurs when a country's exports exceed its imports, indicating a positive balance of trade.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports.