If firms in oligopoly form a cartel, it will likely break down because _____. A. Firms cannot
Question:
If firms in oligopoly form a cartel, it will likely break down because _____.
A. Firms cannot agree on how to share the economic profit
B. The price set by the cartel is too low
C. With price exceeding marginal cost, a firm might expand production to increase its profit
D. Firms realize that their allocation of resources is inefficient
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c Each firm in the cartel has the incentive ...View the full answer
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