The basic problem of a shared monopoly from the point of view of those involved is that

A. the shared output is too high for the high price to be maintained.
B. revenue is lower than in the other oligopoly models.
C. collusive agreements are difficult to sustain.
D. profits are lower than in the other oligopoly models.


Answer: C

Economics

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A cartel is a collusive agreement among a number of firms that is designed to

A) expand output and lower prices but not to a predatory level. B) restrict output and lower prices to a predatory level. C) restrict output and raise prices. D) expand output and raise prices. E) expand output and lower prices to a predatory level.

Economics

Refer to the above table. If the price of the product is $1.50, what is the marginal revenue product of the 12th worker?

A) $1035 B) $135 C) $90 D) $1.50

Economics

Minimum wage legislation:

a. sets a price ceiling above the market-clearing price. b. has no impact if the minimum wage is above the market-clearing price. c. has the same impact in all labor markets. d. creates unemployment when the minimum wage is above the equilibrium wage. e. is opposed by organized labor.

Economics

When a borrower fails to pay back a loan according to the agreed-upon terms, it is called:

A. credit risk. B. default. C. opportunity cost. D. inflation.

Economics