Which of the following is true regarding tacit collusion?
A) It is a formal agreement.
B) It is more likely to occur when the price elasticity of demand is small.
C) It is more likely to occur when barriers to entry are low.
D) It is illegal.
B) It is more likely to occur when the price elasticity of demand is small.
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How does hedging affect the flow of funds in the financial system?
A) It reduces it since it is a sign that investors do not like risk. B) It reduces it because it increases risk by encouraging speculation. C) It increases it because it reduces risk thus encouraging more people to make financial investments. D) It increases it by encouraging more speculation.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly, the Cournot equilibrium will ________.
A) occur at a point on Happy Cleaners' best-response curve, but not Sparkle Cleaners' best-response curve B) provide an incentive for both firms to adjust their output C) occur at the intersection of Happy Cleaners' and Sparkle Cleaners' best response curves D) only occur if Happy Cleaners and Sparkle Cleaners form a cartel
The ________ is the European Union's ultimate decision-making body and is composed of the different ministers of the member countries.
A) European Commission B) Council of the European Union C) European Parliament D) European Court of Justice
Bill Bonecrusher graduates from college with a choice of playing professional football at $2 million a year or coaching for $50,000 a year. He decides to play football, but eight years later he quits football to make movies for $3 million a year. His
opportunity cost at graduation was ________ and eight years later was ________. A) $50,000; $2 million B) $2 million; $2 million C) $2 million; $3 million D) $50,000; $50,000