Some market conditions make cartels MORE likely to succeed in collusion. Which of the following will make collusion more successful?
a. The products are heterogeneous
b. The orders are small and frequent
c. The firms are all about the same size
d. Costs differ across the firms
e. Firms are geographically widely scattered
b
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The objects that we use as money today are
A) checks and credit cards. B) currency and checks. C) currency and deposits. D) deposits and checks. E) currency, deposits, and gold.
If the government places a $1500 tax on each hybrid car sold
A) consumers will stop buying hybrid cars. B) the supply curve will shift left by up to $1500, depending on the price elasticity of demand. C) the supply curve will shift to the right by $1500. D) None of the above.
If the firms in a monopolistically competitive industry are earning short-run profit, which of the following is not likely to occur in the long run?
a. New firms will enter the industry. b. New firms in the industry will draw customers away from existing firms. c. Existing firms in the industry will face a decrease in demand. d. Firms will continue to earn profit. e. Firms will produce with some excess capacity.
Suppose consumers save 5 percent of their incomes. If the government collects 100 dollars in taxes from each taxpayer, private saving will ________ per taxpayer.
A. increase by $105 B. decrease by $95 C. decrease by $5 D. decrease by 95 cents