If a cartel is unable to monitor its members and punish those firms that violate the agreement, then
A) the member firms will each act as price setters.
B) the cartel will prosper in the long run.
C) the market will become a monopoly.
D) the cartel will fail.
D
You might also like to view...
Which of the following would NOT be directly included in the U.S. GDP in 2010?
A) the purchase of a new home in Atlanta, Georgia in 2010 B) the market value of the jet fuel bought by Delta to use for its flights in 2010 C) the market value of restaurant meals sold in 2010 D) the value of the automobiles produced in 2010 at the Toyota plant located in Georgetown, Kentucky E) legal services provided to first time home buyers during 2010
If a natural monopoly is regulated using
A) a marginal cost pricing rule, the firm maximizes its profit. B) an average cost pricing rule, the firm incurs an economic loss. C) a total cost pricing rule, the firm will exit the industry. D) a marginal cost pricing rule, the firm incurs an economic loss. E) an average cost pricing rule, the firm maximizes its profit.
Refer to Figure 11-15. Suppose Hilda hires labor at $8 per hour and capital costs $10 per unit. What is the minimum cost of producing 200 gooseberry pies?
A) $3,600 B) $1,120 C) $592 D) $560
What is one of the biggest benefits of trade that is hard to measure?
a. the transfer of goods from rich countries to poor countries b. the transfer of knowledge from poor countries to rich countries c. the transfer of knowledge from rich countries to poor countries d. the transfer of goods from poor countries to rich countries