2. Which of the following is not characteristic of a cartel situation? (a) While disagreement over production quotas may occur, once set, there is little incentive for cheating. (b) Consumer surplus under a cartel is smaller relative to the competitive case. (c) Market entry of new producers is a threat to the cartel's viability. (d) High long-run demand elasticity can pose an obstacle to the cartel's success. (e) The output produced by a cartel will be less than the output produced on a competitive market.

2. Which of the following is not characteristic of a cartel situation? (a) While disagreement over production quotas may occur, once set, there is little incentive for cheating. (b) Consumer surplus under a cartel is smaller relative to the competitive case. (c) Market entry of new producers is a threat to the cartel's viability. (d) High long-run demand elasticity can pose an obstacle to the cartel's success. (e) The output produced by a cartel will be less than the output produced on a competitive market.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 3.7P

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