Each Firm in a Cartel Has an Incentive to Chisel

question 22

Multiple Choice

Each firm in a cartel has an incentive to chisel because market price exceeds

• A)marginal cost.
• B)average cost.
• C)average variable cost.
• D)average fixed cost.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, resulting in market balance.

Doctors per Population

A ratio that illustrates the number of medical professionals available to serve a given number of people in a specified area.

Health Maintenance Organizations (HMOs)

Health care providers that contract with employers, insurance companies, labor unions, or government units to provide health care for their workers or others who are insured.

Physical Training

A regimen or program of physical activities designed to improve fitness, strength, or endurance.