Collusion occurs when
A) there is an agreement among firms to charge the same price or otherwise not to compete.
B) firms refuse to follow their price leaders.
C) a firm chooses a level of output to maximize its own profit.
D) two firms' price and output decisions come into conflict.
A
You might also like to view...
The smaller the extent of job rationing, the
A) higher the labor supply. B) lower the labor force participation rate. C) lower potential GDP. D) higher the real wage rate. E) lower the unemployment rate.
Which of the following could shift the labor supply curve and increase employment?
a. An increase in the number of firms b. An increase in income tax rates c. Increased spending on welfare programs d. Increased federal funding for education e. A decrease in income tax rates
The U.S. economy was able to achieve full employment with relative price level stability between 1996 and 2000 because aggregate:
A. Demand increased B. Supply decreased C. Demand increased and aggregate supply increased D. Demand decreased and aggregate supply increased
Moral hazard occurs when buyers and sellers take actions to communicate quality in a world of uncertainty.
Answer the following statement true (T) or false (F)