All of the following are true regarding tacit collusion except which one?
A) It harms buyers.
B) It is more likely when firms' costs are closely related and their products are close substitutes.
C) It is more likely when barriers to entry are low.
D) It is an informal, unstated agreement.
C) It is more likely when barriers to entry are low.
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Why do insurance companies in many developing countries not offer full health insurance coverage to older applicants?
What will be an ideal response?
The ________ interest rate approximately equals the ________ interest rate minus ________
A) nominal; real; depreciation B) nominal; real; the inflation rate C) real; nominal; depreciation D) real; nominal; the inflation rate
Which of the following would make cheating on a collusive agreement more likely?
a. greater ease of observing other firms' prices b. a reduction in the number of sellers in the market c. close monitoring by the Department of Justice d. more frequent shifts in market demand e. an increase in the number of customers in the market
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. decrease in the money supply when there is a recession. c. increase in government expenditures when there is a recession. d. All of the above are correct.