According to the information provided, if Irun fails to live up to the production agreement and overproduces, which of the following statements will be true of Urun's condition?
A)Urun's profit will be maximised by holding its production constant
B)Urun will be hurt more if it follows suit and increases production
C)Urun will invariably be worse off than before the agreement was broken
D)Urun will counter by decreasing its production in order to maintain price stability

Question

Quizplus · Accepted Answer

Urun will invariably be worse off than before the agreement was broken because if Irun overproduces, the price of the product will fall, and Urun will make less profit.

According to the Information Provided, If Irun Fails to Live