In the scenario above, which of the following actions will maximize the industry's economic profit?
A) Both firms comply with the agreement.
B) Both firms cheat on the agreement, producing more than the agreed amount.
C) One of the firms complies with the agreement while the other firm cheats, producing more than the agreed amount.
D) Because the firms are colluding, the profit does not change regardless of whether the firms comply with agreement or cheat on the agreement.
A
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Is faster economic growth unambiguously better?
A. No, because growth has an opportunity cost. B. No, because growth serves no useful purpose. C. Yes, because more goods and services are always better. D. Yes, because it expands the production possibilities of an economy. E. Uncertain, economic growth has no answer to this question.
What is economic value of an exchange?
Simple money multiplier is the reciprocal of the ________
a. discount rate b. lending interest rate c. required reserve ratio d. deposit rate
The allocative function of price cannot operate unless there is:
A. either free entry or free exit. B. neither free entry no free exit. C. both free entry and free exit. D. a significant barrier to entry.