Collusive control over price may permit oligopolists to:
A. use new technology, achieve economies of scale, and get government subsidies.
B. achieve economies of scale, reduce costs, and prevent price cheating.
C. reduce uncertainty, increase profits, and possibly limit entry of new firms.
D. increase product demand, increase product supply, and lower cost.
Answer: C
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The numerical value of the MPC is typically
A. less than 1. B. equal to 1. C. greater than 1. D. unpredictable.
If we observe a decrease in the price of a good and a decrease in the amount of the good bought and sold, this could be explained by a(an):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
When is centralization of decision-making desirable?
A report on GDP says that income fell. Then spending measured by GDP __.
A. might have risen B. must have risen C. might have fallen D. must have fallen