Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit.
b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit.
c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit.
d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit.
e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.
A
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The employment-to-population ratio is defined as
A) total employment divided by labor hours then multiplied by 100. B) the labor force divided by the working-age population then multiplied by 100. C) total employment divided by the labor force then multiplied by 100. D) total employment divided by the working-age population then multiplied by 100.
Which of the following components of spending is not treated as a given value in the short-run macro model?
a. Net exports b. Imports c. Investment spending d. Consumption spending e. Government spending
In the United States, a little more than half the electorate will turn out to vote in:
a. local elections. b. state elections. c. judicial elections. d. presidential elections.
Explain the "too big to fail" doctrine