Three manufacturing firms want to maintain their oligopolistic market power by tacitly colluding with each other. Which action helps them achieve this goal?
a. They create a cartel and sign a formal collusion agreement.
b. They develop an implied price leadership understanding.
c. They ease the barriers to entry in their industry.
d. They hold formal meetings to discuss pricing strategies.
b. They develop an implied price leadership understanding.
You might also like to view...
If gross investment for a year was $120 billion and net investment was $65 billion, then in that year the country's capital stock ________.
A. increased by $65 billion B. increased by $55 billion C. decreased by $55 billion D. may have either increased or decreased
The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.
Dynamic tax analysis is an economic evaluation of tax rate changes
A) by the National Tax Institute in Burlington, Massachusetts. B) by various state governments. C) by the tax institutes established by a consortium of business schools. D) based on the assumption that tax base declines if tax rates continuously increase.
The efficient market hypothesis states that:
A. markets currently contain all available information and correctly value instruments. B. when buyers and sellers act in their own best interest markets will be efficient. C. in order for markets to be efficient they need to be adequately regulated. D. markets currently contain an efficient amount of information for them to clear.