6. Answer if this statement is true, false, or uncertain, and explain. Cartels that form almost always last a long time and are successful. Falge. why? Haw?

14. Aside from advertising, how can monopolisticallycompetitive firms increase demand for their products? 17. Would you expect the kinked demand curve to bemore extreme (like a right angle) or less extreme (like anormal demand curve) if each firm in the cartel producesa near-identical product like OPEC and petroleum?What if each firm produces a somewhat differentproduct? Explain your reasoning.

4. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding. They each have cost C(Qi) = 60Qi. If they cooperate and behave as a monopoly, then they have a marginal revenue curve, MRm = 420 – 2Q, and a marginal cost curve, MCm = 60. If they are in a cartel, then the firms will split the monopoly production and profits. If they compete, then they face MRi = 420 – 2Qi – Q-I and MCi = 60. a. If the firms stick to their agreement (cooperate), how much per-period profit do they each make? b. If they are not able to maintain their agreement (compete), what is their per-period profit? c. If one firm cheats on their agreement (deviate), how much does each firm make? Be sure to specify both the profit for the cheater and the firm cheated-on. d. Suppose the firms assume that their interaction will last forever (r = 1) and they share the common discount value R. What is the lowest value of R such that both firms are willing to continue with the cartel…

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G The formula t xC Where Does X b My Questions X BC Broward C cmillanlearning.com/sac/5078081#/5078081/12/-1 Completed 16 out of 20 Question 13 of 20 > Which of these will contribute to a cartel's stability? O a copyright Obrand differentiation O ease of entry into an industry O having few members with similar goals Rain 五0

10. please quikcly thanks ! Which of the following situations would create conducive environment for the practice of effective collusive oligopoly? A. Slow increase in the number of potential producers. B. Demand curve becomes less elastic for the collusive oligopoly's product. C. Rivals ignore price cuts but follow price increases. D. All firms avoid nonprice competition.

A. Does either firm have a dominant strategy? B.