If an Oligopolist Is Part of a Cartel That Is

question 38

Multiple Choice

If an oligopolist is part of a cartel that is collectively producing at the monopoly level of output, then the oligopolist, being self-interested, will:

• A)lower production and drive up prices
• B)increase production and push prices down
• C)do nothing, thus allowing the cartel to realise monopoly profits
• D)do none of the above

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Definitions:

Inductor

An inductor is a passive electronic component that stores energy in a magnetic field when electric current flows through it, used in various filtering, tuning, and energy storage applications.

Lenz's Law

A principle in electromagnetism stating that induced currents will flow in a direction that opposes the change causing them.

Polarity

The characteristic of having two opposed attributes or poles, commonly used in reference to the direction of electrical current or magnetism.

Ohm's Law

A fundamental principle in electrical engineering that states the current through a conductor between two points is directly proportional to the voltage across the two points and inversely proportional to the resistance.