Final answer:
Oligopolies or cartels may not necessarily cut prices if marginal costs fall; instead, they may retain savings as profits while maintaining high prices due to their market power and strategies to match price cuts but not price increases.
Step-by-step explanation:
The direct answer to whether oligopolies or cartels would be forced to cut their prices if marginal costs fell due to a new technology is B. This is a false statement. In traditional competitive markets, a decrease in marginal costs would typically lead to lower prices due to increased competition. However, within oligopolies or cartels, firms often follow a strategy of matching price cuts from competitors but not matching price increases. This can lead to a tacit form of cooperation that helps these firms maintain higher prices and output levels akin to a monopoly.
Implementing new technology that reduces marginal costs can lead to an increase in profits for oligopolies or cartels rather than a decrease in prices. Any cost savings could be retained as additional profits rather than passed onto consumers, especially if other firms in the market apply similar strategies to maintain high price levels. This behavior is one of the distinguishing characteristics of oligopolistic markets and cartels, even without legally enforceable agreements to fix prices.