What two conditions must be present for a cartel to work?
What will be an ideal response?
(1.) The demand for the cartel's product must be inelastic.
(2.) The members of the cartel must play by the rules.
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At Joey's Lawncutting Service, a lawn mower cannot cut grass without a laborer. A laborer cannot cut grass without a lawn mower
Which graph in the above figure best represents the isoquants for Joey's Lawncutting Service when capital per day is on the vertical axis and labor per day is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
The least costly way to clean up the environment is for all firms to reduce pollution by an equal percentage
a. True b. False Indicate whether the statement is true or false
Which of the following explains the "beauty premium" differences in wages?
a. People who spend time on their personal appearance may send a signal that they are more productive workers. b. Personal appearance and intelligence are inversely related. c. The "superstar phenomenon" explains the "beauty premium.". d. Better-looking people are more efficient; thus, they are paid an efficiency wage.
Why is it safe to assume that national defense will always be provided by the government instead of the market?
What will be an ideal response?