Secret conspiracies to fix prices are examples of:

A. cartels.
B. price leadership.
C. overt collusion.
D. covert collusion.


Answer: D

Economics

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Indicate whether the statement is true or false

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What will be an ideal response?

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Suppose employees pay a bond of $1,000 to an employer. The gain from shirking is $400. Monitoring devices have been installed so that there is a 50% chance of being caught if you are shirking

The company is considering the installation of additional monitoring devices to increase the chance of catching a shirker to 100%. They feel this is needed to deter all shirking. What is your recommendation to the company? Explain.

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When price is below the equilibrium level, there is a shortage of the commodity being sold

a. True b. False Indicate whether the statement is true or false

Economics