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If the Several Companies in the Tobacco Industry Produce Similar

Question 172

Multiple Choice

If the several companies in the tobacco industry produce similar products but have very different marginal costs:


A) they are less likely to engage in tacit collusion than firms with similar costs.
B) they are more likely to engage in tacit collusion than firms with similar costs.
C) prices for tobacco products are more likely to be near the monopoly level than in an industry whose firms have similar costs.
D) output of tobacco products is more likely to be near the monopoly level than in an industry whose firms have similar costs.

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