Which one of the following factors increases the likelihood that a cartel agreement will lead to higher profit for cartel members?
a. free entry into the cartelized market
b. a small number of sellers involved in the cartel agreement
c. the cartel members produce a differentiated product
d. highly unstable demand for the product produced by the cartel
B
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Evaluate the following statement. "If marginal product is falling it will bring down the average product."
What will be an ideal response?
For countries with high seigniorage returns, we expect
A) PPP holding better. B) a high and variable inflation rate. C) a smaller role for their currencies as an international store of value. D) All of the above.
Of all financial intermediaries, which of the following holds the most assets?
A) hedge funds B) the federal government C) commercial banks D) corporations
Fast Prints has a contract with local couriers to deliver their products to customers located throughout the city and it cost Fast Prints $5,000 in legal fees to establish the contracts. Fast Prints charges $25 for each set of 500 copies delivered in the city. What are Fast Prints' transaction costs?
A) $5,025 B) $4,975 C) $25 D) $5,000