Explain what you know about collusion and cartels, including: definition, formation of motives, types and differences between these types, and so on. b. Why is this behavior often encountered in imperfectly competitive market structures such as oligopolies? c. What obstacles/obstacles do collusion and cartels often face?

Explain what you know about collusion and cartels, including: definition, formation of motives, types and differences between these types, and so on. b. Why is this behavior often encountered in imperfectly competitive market structures such as oligopolies? c. What obstacles/obstacles do collusion and cartels often face?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter24: Monopolistic Competition, Oligopoly, And Game Theory

Section24.3: Price And Output Under Cartel Theory

Problem 1ST

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just answer the subpart d a. Explain what you know about collusion and cartels, including: definition, formation of motives, types and differences between these types, and so on. b. Why is this behavior often encountered in imperfectly competitive market structures such as oligopolies? c. What obstacles/obstacles do collusion and cartels often face? d. Name and explain at least 3 factors that can facilitate the occurrence of collusion and cartel!
Describe the characteristics of monopolistic competition and oligopolies and how cartels emerge in an oligopolistic structure. Why is there a cheating incentive when it comes to cartels and how can it be explained through game theory?
Discuss the possible deviations from perfect competition and then focus on oligopolies. How can cartels coordinate to affect markets? What affects antitrust enforcers’ ability to detect cartels? Discuss with reference to one or more examples.
Question 6 (a) Why is Perfect Competition considered to display high level of economic efficiency? (b) How does monopoly result in a dead-weight loss? Illustrate with diagram. (a) How is oligopoly different from monopolistic competition? (b) Illustrate and explain how the oligopolistic firms determines their collective profit by maximizing price and output levels when they collude and act like a cartel (monopoly). Question 7 (a) What are the main causes of market failure? Give one example and illustrate using a diagram. (b) Explain the difference between private costs and social costs. (c) Government of Country X is considering implementing a tax on fizzy drinks. Using a demand and supply diagram, illustrate what effect the tax will have on the market of fizzy drinks. (d) For what purposes does government use taxes-both at micro and macroeconomic level?
Cartel theory is usually understood as the doctrine of economic cartels. However, since the concept of 'cartel' does not have to be limited to the field of the economy, doctrines on non-economic cartels are conceivable in principle. Explain the cartel theory using an appropriate graph. Indicate the incentive for the oligopoly firms to form a cartel.
The task to complete is to create a market scenario for a branded handbag. (You can google handbags and come up with hundreds!): Name the company and describe one of its "signature" handbags. - Draw the monopolistic competition market model for that company showing a profit. 1. Do you think that the United State's economic system is best described by a perfectly competitive dynamic or best described by a monopoly dynamic where there are forces that exclude entry into markets or by a monopolistic competition dynamic with some power to exclude entry but mainly a market of differentiation?
I need full explanation 1. Considering all four market structures, which of the following occurs only in an oligopoly? a. A downward sloping market demand curve. b. A downward sloping demand curve for the individual firm. c. Interdependence and strategic behavior. d. A differentiated product. e. A standardized product. 2. A monopolistic competitor engages in advertising to a. Provide information about its good or product. b. Differentiate its product from those if its rivals. c. Increase the demand for its good or service. d. All of the above. 3. Which of the following advertisements provides information to the consumer? a. “CarbChips have half the carbohydrates of regular potato chips”. b. “The Taj Mahal restaurant is like a trip to India”. c. “Brain-power Books – just think it!” d. “Avion Airlines wants to take you higher”. 4. Firms in an Oligopoly produce a quantity of output that is less than the level produced by a perfectly competitive market and charge a price that is greater…
3. What is a cartel? Describe some of the problems inherent in forming and maintaining a cartel.
Please only answer D 7. (Collusion and Cartels) Why would each of the following induce some members of OPEC to cheat on their cartel agreement? a. Newlyjoinedcartelmembersareless-developedcountries. b. The number of cartel members doubles from 12 to 24. c. International debts of some members grow. d. Expectations grow that some members will cheat.
Describe the source of tension between cooperation and self interest in a market characterised by oligopoly. Use an example to show why this tension causes instability in cartels in a few sentences
how conflicting affecting cartels and like cartels like opec fail to reachto consensus on price and quantity?
a. What evidence is there to indicate that the UK supermarket business is an oligopoly? What further evidence might you need to be more certain that this is the case? b. Comment on the suggestion that Tesco’s position as price leader is being undermined. c. Other than price cutting, analyse the ways in which the Big Four might restrict the growth of new entrants such as Aldi and Lidl. d. Discuss the extent to which the stores wars described above is in the best interests of the UK consumers. The supermarket business in the UK is dominated by the so-called ‘Big Four’. Their market shares in March 2014 are shown below:Tesco .................. 28%Asda ................... 19%Sainsburys .......... 18%Morrisons ........... 11%Other established supermarkets, notably the Co-operative and Waitrose, are way behind with market shares of 5–6%. Over the year to March 2014, Tesco and Morrisons have lost out whilst the other two have hung on to retain or marginally increase their market share.…