Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

Related Mcqs:

Relative to a competitively organized industry a monopoly ?

A. Produces less output, charges higher prices and earns economic profits. B. Produces less output, charges lower prices and earns only a normal profit C. produces more output, charges higher prices and earns economics profits D. produces less output, charges lower prices and earns economic profits...

In the long run ?

A. all firms must make economic profits. B. there are no fixed factors of production C. a firm can vary all inputs, but it cannot change the mix of inputs it uses. D. a firm can shut down, but it cannot exit the industry...

A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?

A. an indifference curves. B. an isoquant. C. an isocost line D. a production functions...

A graph showing all the combinations capital and labor available for a given total cost is the ?

A. expenditure set B. isocost line. C. budget constraint D. isoquant...

Which of the following statements best describes the outcome under monopolistic competition ?

A. It is efficient because the right amount of output is produced, but not efficient in that the output produced is produced at a cost above minimum average total cost B. It is efficient because entry is free and economic profits are eliminated in the long run. C. It is not efficient because too little … Which of the following statements best describes the outcome under monopolistic competition ?Read More...