The lime drinks industry and the cola drinks industry are both operating as oligopolies. The two firms in the lime drinks industry agree to form a cartel, while the three firms in the cola drinks industry are unable to come to an agreement. In the given scenario, which of the following statements is true?
a. The producers of lime drinks will share monopoly profits, while the producers of cola drinks will have profit levels typical of competition.
b. The producers of lime drinks will have the profit levels of monopolistic competitors, while the producers of cola drinks will eventually have zero profits.
c. The producers of lime drinks will eventually have zero profits, while the producers of cola drinks have the profit levels of perfect competitors.
d. The producers of lime drinks will have profit levels like perfect competitors, while the producers of cola drinks will share monopoly profits.
a
You might also like to view...
Which of the following accept deposits from or sell shares to the general public? i. money market funds ii. thrift institutions iii. commercial banks
A) i only B) ii only C) iii only D) Both ii and iii E) i, ii, and iii
Suppose the President asks you to write him a letter suggesting ways the government might help the economy achieve permanently higher rates of economic growth
Based on your understanding of growth theory and growth accounting, what would you suggest?
Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
Examples of Fed actions that could decrease money supply are making open market
a. purchases, increasing the required reserve ratio, and increasing the discount rate b. sales, decreasing the required reserve ratio, and increasing the discount rate c. sales, increasing the required reserve ratio, and decreasing the discount rate d. sales, increasing the required reserve ratio, and increasing the discount rate e. purchases, decreasing the required reserve ratio, and decreasing the discount rate