If an oligopolist is part of a cartel that is collectively producing the monopoly level of output, then that oligopolist has the incentive to increase production with the aim of
a. increasing prices.
b. increasing profits for the group of firms as a whole.
c. increasing profits for itself, regardless of the impact on profits for the group of firms as a whole.
d. decreasing costs of production.
c
You might also like to view...
As inflation rates increase, money becomes less useful as a
A) store of value. B) double coincidence of wants. C) unit of account. D) medium of exchange.
Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the long run?
A) a recessionary gap B) a reduction in real GDP C) an inflationary gap D) none of the above
Which of the following statements about the GDP gap is not true?
a. It widens during recessions and narrows down during expansions. b. When an economy's GDP gap equals zero, it operates on its production possibilities curve. c. It is a measure of output lost as a result of unemployment. d. There are more goods and services available in an economy as its GDP gap widens. e. It is equal to potential real GDP minus actual real GDP.
Monetarists believe that the underlying economy is stable.
Answer the following statement true (T) or false (F)