The duopoly price strategy provides ________ incentive to maintain cartel pricing as compared to the grim-trigger strategy.
A. a greater
B. less of an
C. the same
D. The answer depends on the firms' average cost curves.
Answer: B
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Given the following information about Metropolis Bank:
Bank Deposits $50,000 Loans 17,500 Required Reserves 30,000 Excess Reserves 2,500 The required reserve ratio must be A) 75 percent. B) 60 percent. C) 30 percent. D) 15 percent.
Barter is
A) another type of money. B) printing too much money. C) the exchange of goods and services directly for other goods and services. D) the exchange of goods and services for any type of money.
If government officials break a natural monopoly up into several smaller firms, then
a. competition will force firms to attain economic profits rather than accounting profits. b. competition will force firms to produce surplus output, which drives up price. c. the average costs of production will increase. d. the average costs of production will decrease.
An economy's natural rate of unemployment is the
a. economy's long-run target level of unemployment. b. amount of unemployment that the economy normally experiences. c. lowest rate of unemployment the economy can achieve. d. All of the above are correct.