Collusion is easier to achieve and maintain in oligopoly when
a. there are many firms in the industry
b. the firms' products are homogeneous
c. the firms' cost structures are very different
d. there are very weak barriers to entry
e. the industry is located in the United States
B
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Figure 7-7
In Figure 7-7 at 100 units, FC equals
A. 1,000. B. 1,800. C. 800. D. 80.
The government deficit
A) is equal to the government surplus plus taxes minus government spending. B) is equal to GDP minus GNP. C) is equal to disposable income plus the current account surplus. D) is equal to the negative of government saving.
If aggregate demand shifts because of a wave of pessimism about stock prices, those who favor a policy that "leans against the wind" would advocate the
a. Federal Reserve increase the money supply or the government increase taxes. b. Federal Reserve increase the money supply or the government decrease taxes. c. Federal Reserve decrease the money supply or the government increase taxes. d. Federal Reserve decrease the money supply or the government decrease taxes.
In the long run, profits in a monopolistic competition market are zero because:
a. of government regulations. b. of collusion. c. firms are free to enter and exit the market. d. firms produce a differentiated product.