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The ________ is useful in analyzing situations in which firms agree to collude (not compete) and act together as if they were a monopoly.

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User Mirekphd
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1 Answer

7 votes

Final answer:

A cartel is useful in analyzing situations where firms agree to collude and act together as if they were a monopoly.

Step-by-step explanation:

In analyzing situations where firms agree to collude and act together as if they were a monopoly, the concept of cartel is useful. A cartel is a group of firms that have a formal agreement to collude and produce the monopoly output, while selling at the monopoly price.

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User Bereal
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