Question

Which statement is false?
A.
A monopoly sells lower-quality products at higher prices than in a perfect competition.
B.
Natural monopolies are necessary to avoid wasteful duplication of resources.
C.
Collusion is legal in the United States, but cartels are not.
D.
The start-up costs in a monopolistically competitive industry are low.
E.
Homogeneous products leave consumers with no choice.

Answer 1

probably a because after they drive out the lower stores and people have nowhere else to shop they can sell cheaper made products at higher prices

Answer 2

The correct answer is C) Collusion is legal in the United States, but cartels are not.

The statement that is false is "Collusion is legal in the United States, but cartels are not."

Under antitrust laws, cartels are not legal in the United States. A cartel ins formed when companies join together to control production, the sale of the product and establish the price. Collusion also is illegal in the United States. It implies a secret agreement to cheat people. Treason or conspiracy can be crimes in the US.