Question

If a group of sellers could form a cartel, what market structure would that be? Explain....

If a group of sellers could form a cartel, what market structure would that be? Explain. Based on the actions of the cartel members, what quantity and price do you think they would try to set? Provide specific examples to support your examples.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If a group of sellers form a cartel, we can term it as a monopolistic market structure since all the members of this cartel would influence the price/demand of product/services available in the market.

Normally in this market structure the cartel would try to set higher prices since the consumers won't have the bargaining power to choose from whom to buy and at what price. The power parity is more towards the seller/cartel.

Suppose, in a market three sellers (selling mangoes) forms a cartel and they are the only three sellers in the market selling mangoes. They would always attempt to keep the prices at elevated levels since they know there are no substitutes for their mangoes. As a results consumer have to buy the mangoes at the set price rather than having the bargaining power to choose the price.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the advantages and disadvantages to the net present value technique. Explain under what circumstances the...
Explain the advantages and disadvantages to the net present value technique. Explain under what circumstances the NPV and IRR could provide different decisions. Please provide examples (numerical form) which would support your response.
When the government imposes a tax on the sale of a particular good, the sellers try...
When the government imposes a tax on the sale of a particular good, the sellers try to pass the tax onto consumers by raising the price of the good sold. Assume you own a tire company, and the government decides to impose a $1.00 tax on each tire sold. 1. Based on the basics of supply and demand, explain what would likely happen to the price you charge and the quantity of tires sold. 2. Would the amount of the...
When the government imposes a tax on the sale of a particular good, the sellers try...
When the government imposes a tax on the sale of a particular good, the sellers try to pass the tax onto consumers by raising the price of the good sold. Assume you own a tire company, and the government decides to impose a $1.00 tax on each tire sold. 1. Based on the basics of supply and demand, explain what would likely happen to the price you charge and the quantity of tires sold. 2. Would the amount of the...
Can you explain why the market for jackets and coats would be examples of imperfect market...
Can you explain why the market for jackets and coats would be examples of imperfect market structures? Please provide real-life examples in your response. Do you believe the demand for costs aligns with the Law of Demand and Law of Supply? A farmer’s market is a good example of a free market system in which the government does not influence prices, but do you believe in some degree vendors are regulated because they have to possess a license to sell...
Think of a dream job you would like to do where you could work from home...
Think of a dream job you would like to do where you could work from home either full time or several days a week. Answer the questions below in a well-constructed paragraph or two.     What is the job?     What technology would you need to have in place to support your work? Be specific. What type of computer set up would you need? Would your current network connection be sufficient and reliable? If not, how would you go about...
1. Using what you know about the molecular structure of biofilms and explain with specific examples...
1. Using what you know about the molecular structure of biofilms and explain with specific examples how you think biofilms play a role in pathogenesis and protecting microbes from cleaning agents or drugs like antibiotics. Consider in your answer the solubility and chemical properties of carbohydrates.
How do economists define a "bubble"? Provide an example of an asset market that you think...
How do economists define a "bubble"? Provide an example of an asset market that you think could be the next bubble and explain why. (Do not use the examples cited in your textbook).
View the film Twelve Angry Men and write a paper analyzing the group discussion dramatized in...
View the film Twelve Angry Men and write a paper analyzing the group discussion dramatized in the film. While watching the film, take notes that include specific examples to illustrate concepts related to group communication. You may want to rent the film from a local video store and view it again as you develop ideas for your paper. Issues For Analysis: Your analysis of the jury should address five issues. Provide specific examples from the film to support your conclusions....
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel...
21. The “prisoner’s dilemma” facing a cartel is that A) what is good for the cartel is bad for society as a whole B) the production level that is best for a self-interested firm may not be what is best for the cartel as a whole C) what is good for the cartel as a whole is to maximize production; the dilemma is that individual cartel members may not want to share technology secrets with other firms D) the profit-maximizing...
• What do you think makes an object a dangerous weapon? Explain. • What case law...
• What do you think makes an object a dangerous weapon? Explain. • What case law could be used to support arguments? Identify and describe examples.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT