Cartel agreements are more likely to break down when
A) there are few variations in market demand.
B) new firms enter the market.
C) participating firms earn huge profits.
D) none of the above.
B
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Utility is:
A. maximized by rational individuals. B. revealed by observing choices an individual makes. C. the satisfaction individuals get from different bundles of goods. D. All of these are true.
When the slope of the total production curve steepens, it means:
A. the marginal product must be increasing. B. the marginal product must be decreasing. C. diminishing marginal product must hold. D. None of these is true.
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:
A. $20 B. $195 C. $215 D. $10
The exchange rate is the
A. Amount of currency that can be purchased with one ounce of gold. B. Balance-of-trade ratio of one country to another. C. Opportunity cost at which goods are produced domestically. D. Price of one country's currency expressed in terms of another country's currency.