If three firms of similar sizes join to form a cartel, then it is most likely that
A) they will charge a common, higher market price.
B) they will collectively produce more than before.
C) all three firms will stop producing.
D) all three firms will earn zero profits.
A
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What happens when wages are set by law above the equilibrium level?
a. Firms employ fewer workers than they would at the equilibrium wage. b. Firms employ more workers than they would at the equilibrium wage. c. Firms tend to try to break the law and hire people at the equilibrium level. d. Firms hire more workers but for fewer hours than they would at the equilibrium wage.
The supply function for good X is given by Qxs = 200 + 4PX - 3PY - 5PW, where PX is the price of X, PY is the price of good Y and PW is the price of input W. If PX = 500, PY = 250, PW = 30, then the supply curve is
A. Qxs = 1300. B. Qxs = -700 + 4Px. C. Qxs = 150 + 4Px. D. Qxs = -550 + 4Px.
Marginal cost is equal to average variable cost
A) when average variable cost is at its minimum value. B) when marginal cost is at its minimum value. C) when average variable cost is getting smaller. D) when average variable cost is getting larger.
The use of money and credit controls to achieve macroeconomic goals is
A. Monetary policy. B. Supply-side policy. C. Eclectic policy. D. Fiscal policy.