If Joint Profits Are to Be Maximized in an Oligopolistic

question 5

Multiple Choice

If joint profits are to be maximized in an oligopolistic industry with a homogeneous product,the firms

• A)can produce whatever output they want at the agreed-upon price.
• B)need to determine the output each firm will produce.
• C)must form a cartel in order to be legal.
• D)have no individual incentive to cheat on the agreement.
• E)None of the above - differentiated products are required for joint-profit maximization in oligopoly.

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Definitions:

Inherently Dangerous

Refers to activities or substances that, by their nature, pose a significant risk of harm.

Superseding Cause

A superseding cause is an unforeseeable event that interrupts the chain of causation, relieving a defendant from liability for harm caused after the event.

Causal Connection

The relationship between a cause and its effect, denoting how one event is directly responsible for the occurrence of another.

Breach of Duty

The failure to act or perform one's duties as required by law or contract, leading to legal implications.