Suppose there are two firms maintaining a cartel agreement. If one firm suddenly drops its price, the other firm could interpret this as signaling:
A. a change in market conditions.
B. limit pricing.
C. cartel pricing.
D. cooperative pricing.
Answer: A
You might also like to view...
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
According to the text, data supports the conclusion that lower trade barriers
A) help boost per capita real Gross Domestic Product (GDP) growth. B) help to increase welfare payments. C) decrease the standard of living in the country. D) decrease life expectancy.
The largest merger in American history was that of
a. Chemical Banking and Chase Manhattan in 1996. b. America Online and Time Warner in 2000. c. Gillette's acquisition of Duracell in 1985. d. Credit Suisse's acquisition of Northern Rock in 2007.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential