Collusion means that: a.two monopolistically competitive firms agree to keep their price lower than their competitors. b.two or more oligopolistic firms act as if they were a monopoly. c.a large number of monopolistically competitive firms decide to keep the price high to maximize collective profits. d.a monopolistic firm uses illegal means to maximize its profits.

Attempts 6. Oligopolies This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. Major league baseball team owners have an oligopoly in the market for baseball players. The owners' goal is to keep players' salaries. Keep the Highest/3 True or False: This goal difficult to achieve because baseball players demand more money. O True O False Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose. True or False: The owners felt the need for a salary cap to help prevent any team from cheating. O True O False

A​ fast-food restaurant decides to raise the price of its hamburgers. Assume the firm is in a monopolistically competitive industry. What will happen to the demand for its​ hamburgers? When the​ fast-food restaurant raises the price of​ hamburgers,   A. some of its customers will be willing to pay a higher price because this restaurant is close to them.   B. none of its customers will be willing to pay the higher price and will stop buying hamburgers.   C. all of its customers will be willing to pay a higher price because this restaurant faces no competition.   D. all of its customers will be willing to pay the higher price because they prefer this brand of hamburgers .   E. none of its customers will be willing to pay the higher price because this restaurant faces competition from other restaurants

1. If Sam and Jack each produce the same quantity of appointments as would be produced in perfect competition, the total quantity of appointments is ___ the price per lesson would be ____ , and the economic profit of Sam and Jack would be____? 2. If Sam and Jack form a cartel and produce the same quantity of appointments as would be produced in a monopoly, the total quantity of appointments would be ____, the price per appointment is ____ and the economic profit of Sam and Jack is ____?  3. Would Sam and Jack have an incentive to break the cartel agreement and lower their price to increase the number of tennis lesson appointments?