ExamView Pro - quizoligopoly

ExamView Pro - quizoligopoly - Name: _ Class: _ Date: _ ID:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: ________________________ Class: ___________________ Date: __________ ID: A 1 quiz oligopoly Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following best describes why each member of a cartel has an incentive to increase its output. a. At the cartel output ATC>MC, thus increasing output decreases ATC c. At the cartel output P>ATC, so more units are profitable b. At the cartel output MR>MC, thus increasing output increases profit d. At the cartel output MC is still decreasing, thus more units are profitable. Suppose the cost curves below are representative for a potential member of a cartel. Assume that any one firm does not affect the price. If there is no agreement this market would be in a long-run equilibrium. The proposed cartel outcome is for each firm to produce 110 units. If all firms do this the price will be $2.50. ATC MC 100 110 120 130 140 150 160 170 1 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 ____ 2. If all members of the cartel produce the cartel output, what will be profit per firm? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

ExamView Pro - quizoligopoly - Name: _ Class: _ Date: _ ID:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online