Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
a. high prices
b. low price elasticity of demand
c. high compatibility of member interests
d. significant barriers to entry
e. unequal member ownership of the natural resources
E
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Cooperation in an economy characterized by extensive specialization requires
A) a rapid exchange of accurate information. B) flexible government controls. C) high unemployment to stem inflation. D) highly trained economists to "fine-tune" the economy. E) price controls.
Regarding fiscal policy, the new classical economists
a. are in favor of stability. b. attempt to avoid excessive and inflationary stimulus. c. want to avoid erratic government deficit spending. d. All of the above e. None of the above
Strategic interdependence occurs in:
a. perfect competition. b. monopoly. c. monopolistic competition. d. oligopoly. e. monopsony.