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Delicious77 [7]
4 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]4 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:

55 legal pads.

Explanation:

The level at which Blackmon Brothers should order more legal pads is the re-order point.

The calculate re-order point, we require

Average daily usage

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For Blackmon, Average daily usage will be 165 divided by 15 days

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Formula for getting the re-order point

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For Black man

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They should re-order when they have a balance of 55 legal pads.

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Answer:

$12,000

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Gain = Sold duplex - Fair market Valve

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