Economics 9708 · AS & A Level · 7.6

7.6 — practice question

(a)[12]

Monopoly firms will always seek to maximise profits, and limit pricing is the sole way to ensure that these profits are preserved in the long run. Discuss the extent to which you agree with this statement.

(b)[13]

Explain what economists mean by collusion and consider the view that collusion will happen only within a particular type of market structure.

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