Does cheating increase consumer surplus

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Usually, we think of cheating as a bad thing. But in this chapter, cheating turns out to be a very good thing in some important cases.

a. Who gets the benefit when a cartel collapses through cheating: consumers or producers?

b. Does this benefit usually show up in a lower price, a higher quantity, or both?

c. Does cheating increase consumer surplus, producer surplus, or both?

d. So, is cheating good for the cheaters or good for other people?

Reference no: EM131830673

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