Collusion can earn higher prices and higher profits under the Bertrand model, but why is this an unlikely outcome in practice?
A) Firms prefer to remain independent of other firms so that their pricing plans can be more flexible over time.
B) The collusive firms have an incentive to gain market share at the expense of the other firms by cutting prices.
C) The federal antitrust authorities have an easier time catching firms that collude on price rather than quantity.
D) none of the above
B
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If the percentage change in quantity demanded for a good is larger than the percentage change in its price, then the price elasticity of demand of the good is said to be: a. elastic
b. inelastic. c. perfectly inelastic. d. unit elastic.
Which of the following is not held constant when looking at an individual's demand curve?
a. income b. price c. preferences d. the availability of alternative goods
Transportation Department requires that airlines give refunds for tickets ___________ within 24 hours of a purchase, or offer a 24-hour hold, for tickets bought more than a week before departure.
Fill in the blank(s) with the appropriate word(s).
From 1944 to 2001, the number of workers employed in manufacturing in the United States
A) fell from about 38 percent to about 12 percent. B) remained fairly steady at around 24 percent. C) plummeted from over 75 percent to less than 5 percent. D) slightly increased from roughly 17 percent to 19 percent.