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Sublight2097 Sublight2097
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8 years ago
What makes it extremely difficult for cartels to function effectively without government assistance?
A) Cartel members cannot agree among themselves on the optimum price because all have different costs.
B) High prices encourage cartel members to offer discounts, and they attract new entrants to the industry.
C) Marginal cost will not equal marginal revenue except at output levels beyond the cartel's capacity.
D) Public interest considerations usually require an output greater than the cartel's net revenue maximizing output.
E) The hostility of the public to price exploitation makes it difficult for the cartel to defend itself against the consequences of popular hostility.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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SmooothSmoooth
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8 years ago
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Sublight2097 Author
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#2
8 years ago
Another one in the books, marking it solved.
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#3
8 years ago
You're welcome Happy Dummy
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