A price leader sets a price that ______.
a. undercuts the prices of the price followers
b. aligns with the cartel agreement
c. maximizes the concentration ratio
d. maximizes its individual profit
d. maximizes its individual profit
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The joining of firms that are producing or selling a similar product is
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) always an illegal merger.
Fractional reserve banking is a term used to describe a banking system whereby
A) individual banks share a fraction of the total funds deposited in the whole banking system. B) banks are required to quote interest rates in fractions. C) banks hold reserves equal to only a fraction of their deposit liabilities. D) banks hold reserves equal to a multiple of their deposit liabilities; that is, fractional in this case really means multiple. E) banks are required to maintain a certain fraction of their deposits in the form of checkable deposits, a certain fraction of their deposits in the form of savings deposits, etc.
Demand is a schedule of
A. each possible price and the amount people will buy when their incomes change. B. how much of a good people will purchase at each income level. C. how much of a good people will purchase at each different possible price. D. how much of a good a person wants.
A game in which all the players are better off at the end of the game is a
A. tit-for-tat game. B. noncooperative game. C. positive-sum game. D. dominant strategy game.