Give an example of a famous cartel
OPEC (Organization of Petroleum Exporting Countries)
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The quantity theory of money explains how ________ depends on ________
A) real GDP; the money supply B) the price level; the demand for money C) the money supply; the velocity of money D) all of the above E) none of the above
An electric power company uses block pricing for electricity sales. Block pricing is an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) Block pricing is not a type of price discrimination.
Investment is a positive function of the national income level
Indicate whether the statement is true or false
In general, firms in a cartel:
A. agree to set price equal to marginal cost. B. do not consider the actions of the other firms in the cartel when making output decisions. C. produce levels of output exceeding the monopoly output level. D. agree to charge the price the monopolist would charge.