People sometimes point to similar gas prices at competing gas stations as eviden

Question

People sometimes point to similar gas prices at competing gas stations as evident of collusion when they could just be selling at market price If this is not good evidence of collusion, what Is? The profits of the company are unusually high in the short run. The station owners regularly have morning coffee together. There is some kind of punishment for cheating. Someone thinks they overheard their Plans for collusion. When producers engage in cartel like behavior, they attempt to the behavior of: a competitive firm, a small firm In a competitive industry a monopoly, buyers Which of the following statements is TRUE? It Is easier to establish a cartel for a manufactured good than for a resource. Cartels are more successful when there are many substitutes for the cartel's good.

Explanation / Answer

36) a

If there is unusual profit in a very short term then certainly they are colluding, Gas companies do not offer very high margins to them.

37) C

The attempt to mimic a monopoly, Most of the producers dream is to operate in monopoly, where profits are way higher

38) A is true

Becasue for natural resource there are too many suppliers and supply cannot easily be regulated.

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