Explain whether you agree or disagree with the following statement.

Business

1 answer:

butalik [34]3 years ago

7 0

Answer: AGREE

Explanation:

A Monopoly faces no competition and are the only sellers of the product they sell. If firms in an industry successfully engage in collusion, the resultant effect will definitely be not unlike a Monopoly because they will set prices as a single firm, control output as a single firm and essentially run the market as a single firm.

They will sell at a rate where the Marginal Revenue curve will be below the demand curve. This will mean a higher price than a competitive market which was probably the main incentive for collusion.

A recent example would be the collusion between BMW, Daimler and Volkswagen, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits. Thankfully this was busted by the European Commission in 2019.

You might be interested in

How much money should you save in case you have an emergency? eight months of living expenses six months of living expensestwelv

mezya [45]

Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months' worth of living expenses.

4 0

3 years ago

Read 2 more answers

How can optimism help you as an entrepreneur?

bulgar [2K]

Being an entrepreneur can be very stressful and sometimes seem like you may not reach your goal. Optimism can calm you down to make the decision that is better over time rather than rushing into a bad decision that seems good.

4 0

3 years ago

Read 2 more answers

1.What three factors determine the demand for a product?

Delvig [45]

incomes of the people

the number of customers in the market

3 0

3 years ago

Starting an investment portfolio at a young age means:

Zinaida [17]

Answer:

c. There is greater potential for high yield over a longer period

Explanation:

6 0

3 years ago

The introduction of diet coke by the Coca Cola Company is an example of ________.A) line extensionB) brand harmonizationC) categ

Margaret [11]

Answer:

correct answer is A) line extension

Explanation:

solution

correct answer is line extension because in line extension method product is publicize for goods or services under name of well established company so their order to increase the profit

they make change the variety and their flavor

as that Coca Cola Company expand their new Coke options

so correct option is A) line extension

3 0

3 years ago