In the cartel model
a. firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products.
b. each firm acts as a price taker.
c. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.
d. firms coordinate their decisions to act as a multiplant monopoly.
d
You might also like to view...
The foreign holdings of U.S. dollars
a. reduce the living standards of Americans. b. are not included in the M1 money supply. c. account for approximately half of all U.S. currency issued by the Fed. d. are hard to explain since the dollar is not legal tender outside the United States.
All else equal, an increase in demand will cause an increase in producer surplus
a. True b. False Indicate whether the statement is true or false
In the graph below, the price of capital is $500 per unit. Between 30,000 and 50,000 units of output, how much does each additional unit of output add to long-run total cost?
A. $300 B. $1.50 C. $2.45 D. $30,000 E. none of the above
The share of long-term unemployment:
A. increases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe. B. decreases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. C. increases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. D. decreases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe