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Delicious77 [7]
3 years ago
5

Assume the market for cell phones is an oligopoly. Further assume that cell phone consumption and production generate no negativ

e externalities. Imagine that all the companies in the oligopoly agree to collude and charge a single price for their cell phones.
Which of the following is true?

A. This agreement is in the best interest of society because the price of cell phones will be higher than if there had been no collusive agreement.
B. This agreement is in the best interest of society because the quantity of cell phones sold will be significantly less than the quantity that would be sold if the cell phone market were perfectly competitive
C. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly above marginal cost.
D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.
Business
1 answer:
Svetllana [295]3 years ago
3 0

Answer:

D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

Explanation:

If the market for cell phones is an oligopoly market(Oligopoly market is  a market situation where few firms are dominating the market), and the consumption and production of cell phone generate no negative externalizes and the major companies desired to collude and charge a single price for their product then this agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

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Answer:

attached is the diagram

Explanation:

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marginal production  :

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To draw the Total product of labor , average product labor and marginal product labor curves starting from zero labor

0 worker : Total product = 0, average product labor = 0 , marginal = 0

1 worker : Total product = 1, average product = 1 , marginal = 0

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5 workers : Total product = 5 average product = 1, marginal = 1

6 workers : total product = 6 average product = 1 , marginal = 1

7 workers : total product = 7 , average product = 0.85, marginal = 0

8 workers : total product = 8, average product = 0.75 marginal = 0

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Roberto Designers was organized on January 1, 2021. The firm was authorized to issue 100,000 shares of $6 par value common stock
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Answer:

The total stockholders' equity at the end of 2021 is $271,500

Explanation:

In order to calculate the total stockholders' equity at the end of 2021 we would have to use the following formula:

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