For cartels, as the number of firms (members of the cartel) increases,
a. the monopoly outcome becomes more likely.
b. the magnitude of the price effect decreases.
c. the more concerned each seller is about its own impact on the market price.
d. the easier it becomes to observe members violating their agreements.
b
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Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a maximum retail price b. providing an exclusive contract to a single retailer in a market c. preventing retailers from compensating sales staff for demonstrating the product d. eliminate manufacturer staff that was demonstrating the product in stores
A scatter diagram is a way to show the relationship between disposable income and consumer expenditures.
Answer the following statement true (T) or false (F)
Which is the most accurate statement?
A. Unions are much more powerful today than they were 35 years ago. B. Unions are more powerful in the South than in any other section of the country. C. Nearly half of all American wage earners are members of unions. D. Union membership as a percentage of the labor force has been falling since the mid-1950s.
Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6
Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is
A. 1. B. 2. C. 3. D. indeterminate from this information.