In the long run, it is in the best interests of a member of a cartel to:
a. decrease the price of its output
b. increase the level of its output.
c. maintain the same quality of output.
d. improve the quality of its output.
c
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A firm's demand for labor is known as a "derived demand" because:
a. the firm gains utility from hiring more labor. b. the amount of labor hired depends upon how much output the firm can sell. c. the wage rate paid to workers is derived from the market for labor. d. it's derived from the demand for capital.
In games, strategies are:
A. the outcomes players want to achieve. B. the same for everyone to achieve the same goal. C. the plans of action that players follow to achieve their goals. D. All of these statements are true.
Which of the following is NOT a feature of Sweezy oligopoly?
A. Each firm believes that rivals will cut their prices in response to a price reduction, but will not raise their prices in response to a price increase. B. The firms produce differentiated products. C. Free entry and exit occurs in the market. D. There are a few firms in the market serving many consumers.
When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the:
A. inflation index. B. consumer price index. C. GDP deflator. D. index of leading indicators.