If Oligopolists Engaged in Some Sort of Collusion, Industry Output

question 99

Multiple Choice

If oligopolists engaged in some sort of collusion, industry output would be __________ and the price would be __________ than under perfect competition.

• A)smaller, lower
• B)smaller, higher
• C)smaller, no different
• D)greater, lower
• E)greater, higher

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Definitions:

Social Facilitation Effect

The tendency for people to perform differently when in the presence of others than when alone, often showing improved performance on tasks.

Performance

The manner in which an individual or group executes and accomplishes tasks or activities, often measured against predefined standards.

Tasks

Specific activities or assignments that people engage in, often as part of larger projects or goals.

Normative Social Influence

The influence of others that leads us to conform in order to be liked and accepted by them, resulting in a change in beliefs or behavior to fit in with a group.