Answered

Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Monopolies increase their profits by reducing output. This causes price to rise while as the firm reduces output their marginal cost tends to fall. This creates a gap between price and marginal cost. How does this gap between price and marginal cost help explain why collusion between two (or more) firms is likely fail?

Sagot :

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.