Which one of the following statements is not true?
A. A firm that chooses to cheat on a price-fixing scheme should consider the short-term gain in profits from cheating versus the long-term loss in profits from being punished.
B. The duopoly-pricing strategy leads to negative economic profits.
C. Cartels may break down because of the incentive to cheat.
D. Price leadership arrangements are an implicit price-fixing scheme.
Answer: B
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A) selling government bonds, which increases the money supply. B) selling government bonds, which decreases the money supply. C) buying government bonds, which increases the money supply. D) buying government bonds, which decreases the money supply.
Probabilities, which can be obtained by repetition or are based on general mathematical principles, are called
A) statistical. B) empirical. C) a priori. D) subjective.
Fixed costs are best defined as:
a. costs that do not vary with output. b. costs that are at a minimum when output approaches the firm's capacity. c. the amount that one more unit of output adds to total costs. d. costs that decline as output increases.
A small electric car is an example of an inferior good
a. True b. False Indicate whether the statement is true or false