In the early 1970s the Environmental Protection Agency announced that lead content would not be allowed in

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In the early 1970s the Environmental Protection Agency announced that lead content would not be allowed in gasoline after a certain date. Prior to that time, three producers had been selling a very profitable lead-based additive, tetraethyl lead, which gasoline producers used to boost their gasoline's octane. If those three producers were trying to sustain collusive pricing for this additive, what effect would you expect the EPA's announcement to have on their ability to sustain the monopoly price?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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