Under which of the following market conditions is it most difficult to maintain a cartel agreement?
a. There are many firms in the industry and these firms have similar costs.
b. There are many firms in the industry and these firms have different costs.
c. There are few firms in the industry and these firms have similar costs.
d. There are few firms in the industry and these firms have different costs.
e. There are many firms in the industry and these firms produce homogeneous products.
B
You might also like to view...
If a policy maker is convinced that time lags frequently negate the impact of short-run stabilization efforts, it is likely she would favor ________ policy making
A) nondiscretionary B) discretionary C) aggressive D) active
According to the economic theory of government, policies in a democracy will favor
A) the interests of many small minorities. B) the public interest. C) the real interests of the majority. D) whatever the majority thinks it wants even when this is not in the majority's real long run interest.
If the interest rate is 25%, but cash flows change such that the investment renders a cash flow of $500 in year 1 and $800 in year 2 instead of year 3, would the investment take place?
a. Yes since NPV>0 b. No since NPV<0 c. Yes since the present value of the cash flows is greater than zero d. No since the present value of the cash flows is lesser than zero
List the four determinants of an economy's productivity