A cartel will break down more easily if
A) there are only a few members.
B) industry demand is very stable.
C) market prices can be observed easily.
D) there are many entrants in the industry.
D
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Which of the following are typically financed in the loan market?
i. a mortgage for a house iii. credit card balances iii. the purchase of a share of stock in a corporation. A) i only B) i and iii C) ii and iii D) i, ii and iii E) i and ii
What is the difference between aggregate expenditure and consumption spending?
What will be an ideal response?
f the government imposes a price floor of $6 on this market, then there will be
A. a surplus of 20 units. B. a surplus of 30 units. C. no surplus. D. a surplus of 40 units.
A grower faces a price of $0.13/pound for his/her pumpkins. The buyers of the pumpkins will buy as many pumpkins as offered by the grower at this price. The pumpkin farmer evaluates his/her costs and finds that his/her production costs (average total costs) are $0.16 per pound. He/she also evaluates the marginal cost of production and finds that the marginal cost of production at the current level of production is $0.14 per pound. The average variable cost of production at the current level is $0.12 per pound. In the short run, the producer should try to:
a. Increase amount produced to get maximum profit b. Decrease the amount produced to get maximum profit c. Leave unchanged the amount produced to get maximum profit d. Stop producing and