The key behavioral assumption of the cartel theory is that oligopolists in an industry
A) try to maximize sales instead of profits.
B) act as if they are perfect competitors.
C) act in a manner consistent with there being only one firm in the industry.
D) try to create a demand for their products by way of advertising.
E) none of the above
Answer: C) act in a manner consistent with there being only one firm in the industry.
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Economic theory assumes people's actions generally follow
A) from comparisons of expected costs and benefits. B) no predictable pattern. C) considerations of material self-interest. D) the Golden Rule.
The value of a loan of $100,000 after a year at 5 percent interest is:
A. $5,000. B. $95,000. C. $105,000. D. None of these is true.
During the 1990s, many companies shifted from
A. the Mform to product-oriented organizations. B. the Mform to functional subunits. C. product-oriented organizations to functional subunits. D. functional subunits toward more product-oriented organizations.
The main effect of employment discrimination is
A. Unemployment. B. Underemployment. C. Greater efficiency. D. Greater production.