From society's standpoint, cooperation among oligopolists is
a. desirable, because it leads to less conflict among firms and a wider variety of products for consumers.
b. desirable, because it leads to an outcome closer to the competitive outcome than what would be observed in the absence of cooperation.
c. undesirable, because it leads to output levels that are too low and prices that are too high.
d. undesirable, because it leads to output levels that are too high and prices that are too high.
c
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Which of the following best defines an optimum currency area?
A) a group of nations sharing the same currency B) a group of regions in close proximity to each other. C) a group of regions who operate under similar economic policies. D) a group of regions with economies closely linked by factor mobility and by trade in goods and services E) a group of nations that engage in free trade with each other
An increase in the demand for loanable funds increases the equilibrium interest rate and increases the equilibrium level of saving
a. True b. False Indicate whether the statement is true or false
In the table above, which case has the lowest relative price for a hamburger?
A) case A B) case B C) case C D) All three cases have an equal relative price for a hamburger.
The most liquid asset(s) of all is (are)
a. cash in the hands of the public b. cash in the hands of banks c. demand deposits held by households and businesses at commercial banks d. travelers' checks e. credit cards