-The price is likely to be quite stable in the godfather model because
A) the market functions like a cartel
B) the other firms in the industry have cost advantages over the godfather
C) the godfather could decrease price below levels that other firms could afford
D) entry into the market is easy
E) all firms are maximizing profit anyway

Question

-The price is likely to be quite stable in the godfather model because
A) the market functions like a cartel 
B) the other firms in the industry have cost advantages over the godfather 
C) the godfather could decrease price below levels that other firms could afford 
D) entry into the market is easy 
E) all firms are maximizing profit anyway

Quizplus · Accepted Answer

The Answer of 
-The price is likely to be quite stable in the godfather model because
A) the market functions like a cartel 
B) the other firms in the industry have cost advantages over the godfather 
C) the godfather could decrease price below levels that other firms could afford 
D) entry into the market is easy 
E) all firms are maximizing profit anyway

-The Price Is Likely to Be Quite Stable in the Godfather