Question: a) What long-run effect will an increase in market demand have on a constant-cost industry? b)Explain why cartels are often ineffective in keeping the price

a) What long-run effect will an increase in market demand have on a constant-cost industry?

b)Explain why cartels are often ineffective in keeping the price of their products high. Use an example of a real cartel arrangement to support your answer.

c)Why do firms advertise? What are some advantages and disadvantages of advertising?

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