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Suppose That fiVe fiRms in an Oligopoly Formally Sign a Contract

Question 23

Multiple Choice

Suppose that five firms in an oligopoly formally sign a contract to establish the price of the product in the market. In other words, they have _____.


A) increased the elasticity of demand for the good
B) increased the variety of the goods available to the consumer
C) formed a cartel
D) increased competition in the market

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