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Figure 8.7 -Figure 8.7 Shows a Successful Price-Fixing Arrangement (Cartel) Between Two

Question 190

Multiple Choice

Figure 8.7 -Figure 8.7 shows a successful price-fixing arrangement (cartel) between two identical firms. If the cartel collapses and the two firms compete against each other, the price will be ________ and the quantity will be ________. A) higher; greater B) higher; smaller C) lower; greater D) lower; smaller Figure 8.7
-Figure 8.7 shows a successful price-fixing arrangement (cartel) between two identical firms. If the cartel collapses and the two firms compete against each other, the price will be ________ and the quantity will be ________.


A) higher; greater
B) higher; smaller
C) lower; greater
D) lower; smaller

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