When Two or More Firms Set Prices or Quantities in Unison,economists

question 143

Multiple Choice

When two or more firms set prices or quantities in unison,economists refer to them as a

• A) cartel.
• B) monopoly.
• C) monopolistically competitive market.
• D) perfectly competitive market.
• E) predatory pricing unit.

Understand the effects of regulatory policies on monopolistic markets.

Calculate profit under different pricing strategies and market structures.

Compare and contrast the outcomes of monopolistic markets to perfectly competitive markets.

Understand the concept of consumer surplus and how it is affected by market structures.

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Definitions:

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