In an Oligopoly in Which the Firms Have Entered into a Cartel

question 40

Multiple Choice

In an oligopoly in which the firms have entered into a cartel agreement,the Nash equilibrium exhibits which of the following?

• A) firms jointly maximizing profits
• B) the firms cheating on the cartel agreement, which benefits society
• C) production at a price and output level close to monopolistic competition in the long run
• D) the firms cheating on the cartel agreement, which harms society
• E) one firm cheating on the cartel agreement and the other firms complying with the cartel agreement

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Definitions:

Mycobacterium Tuberculosis

The bacterium that causes tuberculosis, a contagious infection that primarily impacts the lungs but can also affect other parts of the body.

Acid-fast Bacilli

A group of bacteria, including Mycobacterium tuberculosis, that resist decolorization by acids after being stained, used in diagnosing tuberculosis and other infections.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation.

Thoracoplasty

A surgical procedure involving the removal of ribs to collapse part of the lungs for the treatment of tuberculosis or other lung diseases.