Price leadership
a. is a form of explicit collusion
b. works only when firms have dominant strategies
c. is a form of tacit collusion
d. reduces long-run economic profit for individual firms
e. rarely is effective in setting prices in oligopolistic markets
C
You might also like to view...
At the equilibrium point of a market,
a. supply equals demand. b. neither demanders nor suppliers are satisfied. c. the quantities supplied and demanded are equal. d. suppliers will refuse any price increases offered by demanders.
In the United States, the smallest source of expenditure on healthcare is
A) government expenditure. B) private insurance expenditure. C) out-of-pocket expenditure. D) unknown.
Refer to the above figure. Suppose the economy is at point A. By the proper use of fiscal policy, the government can
A) boost taxes to shift LRAS through point A. B) increase government spending to get the economy to point B. C) raise income tax rates to get the economy to point C. D) reduce government spending to get the economy to point D.
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above