A cartel is likely to last longer if
A. market prices vary more over time.
B. there are more firms in the industry.
C. more new firms enter the market.
D. the profits of participating members are relatively stable.
Answer: D
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Explain how the S-curve reflects the typical nature of complementarities?
What will be an ideal response?
Economic profits are equal to accounting profits:
a. In all cases b. In no cases c. When implicit costs are zero d. When implicit costs equal explicit costs
Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. The mustard recall would have caused
A. an increase in the quantity demanded of relish. B. a decrease in the demand for relish. C. a decrease in the quantity demanded of relish. D. an increase in the demand for relish.
Behavioral economists have discovered the following things about people's reaction to losses:
A. People judge losses in relative terms; i.e., relative to the status quo B. People experience increasing marginal disutility from losses C. People would feel the loss of $1,000 more intensely than they would feel the gain of $1,000 D. When people lose successive equal amounts, the initial losses are more painful than later ones