Which of the following is a condition that helps enforce a cartel agreement?
A) a large number of firms
B) relatively differentiated products
C) easily observable prices
D) large variation in prices
Answer: C
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If the government raises the tax on cigarettes, what is the effect on people's incentives and choices?
What will be an ideal response?
The presence of a privately-owned monopoly helps:
A. the monopolist. B. consumers. C. society overall. D. government.
Refer to the following figure. When price is $5 and quantity demanded is 3,000, what is the point elasticity of demand?
A. -1 B. -3 C. -1/3 D. -2/3 E. -5
If people start to buy more expensive fuel-efficient cars rather than cheaper SUVs, even though the additional cost of fuel-efficient cars is greater than the savings in gas over the life of the car, this would be explained by which of the following types of models?
A. Empirical models using regression analysis B. Path-dependent models C. Heuristic models using traditional building blocks D. Heuristic models using behavioral building blocks