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When cartels are created, usually in oligopolistic industries, few firms make agreements on things such as production and prices. This ensures that the few firms in the cartel have economic profit and will eventually drive off weaker firms. This usually results in monopolistic behaviors for the remaining firms and eventually the prices catch up to the consumer. Cartels tend to arise in markets where there are few firms and each firm has a signeficant share in the market.
What else can I help you with?
Are Collusion and cartels are unstable in the long run due to Government regulation?
In many places where the cartels are in full power, the government has no control. Collusion and cartels are not unstable because in many countries, they have overtook the central governments.
How do you use in the long run in the sentence?
My faith will see me through in the long run. Marathon runners excel in the long run. His sprints are spectacular, but he'll lose out in the long run.
Is monetary policy neutral in both the short run and the long run?
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
What is Short run and long run price elasticity of demand?
is the long run elasticity of demand is ever smaller than the short run elasticity of demand.
Are Collusion and cartels are unstable in the long run due to Government regulation?
In many places where the cartels are in full power, the government has no control. Collusion and cartels are not unstable because in many countries, they have overtook the central governments.
Why are Collusion and cartels unstable in the long run due to?
Collusion and cartels are unstable in the long run primarily due to the incentive for individual members to cheat for greater profits. When firms agree to fix prices or limit production, the temptation to undercut competitors or increase output can lead to a breakdown of cooperation. Additionally, external factors such as new entrants into the market and changes in consumer demand can further destabilize collusive agreements. Over time, the risk of detection and legal repercussions also discourages sustained collusion.
What Is the government structure of Columbia?
It is run by columbian drug cartels. There is no elected government as of 1943 when a military coo was staged.
What are the major economic activity in southern Mexico?
Mexicans run drug cartels, steal things, murder people, and cross the border to the U.S.
What happens when unstable unicorns run out of cards in hand during a game?
When unstable unicorns run out of cards in hand during a game, they must draw a card from the draw pile. If there are no cards left in the draw pile, they are eliminated from the game.
How do you use in the long run in the sentence?
My faith will see me through in the long run. Marathon runners excel in the long run. His sprints are spectacular, but he'll lose out in the long run.
What was government like in colonial Mexico?
The government of Mexico before Revolution (1912-1930) was a dictatorship run by Porfirio Diaz who had been running the country on a postivist model in which industry and the economy came first before all over governing bodies.
Is monetary policy neutral in both the short run and the long run?
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
How long did your fair lady run?
how long did my fair lady run
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
Which energy resource is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
Which energy resources is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
