Cartels are difficult to maintain because
a. antitrust laws are difficult to enforce.
b. cartel agreements are conducive to monopoly outcomes.
c. there is always tension between cooperation and self-interest in a cartel.
d. firms pay little attention to the decision made by other firms.
C
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Why do firms in monopolistic competition operate with excess capacity?
What will be an ideal response?
A United States government patent lasts
A) forever. B) 50 years. C) 20 years. D) 7 years.
The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP. B) had been eliminated. C) remained at 7 percent. D) was still nearly 3 percent.
The monetary policy strategy that relies on a stable money-income relationship is
A) exchange-rate targeting. B) monetary targeting. C) inflation targeting. D) the implicit nominal anchor.