Cartel agreements are difficult to maintain because individual members
a. can gain by raising their price above the price that is best for the cartel.
b. are often unable to police the price and output policies of other members.
c. can gain by secretly raising their price above the price that is best for the cartel.
d. can enforce price arrangements vigorously in court.
B
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A positive theory of common law, in which the positions of the courts are predicted based on the assumption that they are attempting to promote efficiency, is proposed by
a. Pigou. b. Coase. c. Posner. d. Epstein.
If a firm is producing no output in the short run, then its total costs are zero
Indicate whether the statement is true or false
Which of the following is one of the reasons to believe that institutional change is more likely now than in the past?
a. The colonial era is over and countries are in the position to make their own institutional choices. b. The collapse of communism has expanded the opportunity for institutional change. c. Reductions in transportation and communication costs have increased the importance of institutions and policies. d. All of the above are true.
Which of the following is used to measure the value of goods and services for GDP?
a. bushels b. centimeters c. dollars d. tons