Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:
A) the number of additional competitors is very small.
B) the cost conditions for the four firms differ substantially.
C) individual firms are able to offer secret price discounts to selected buyers.
D) demand for meat and fresh vegetables is falling.
A
You might also like to view...
A perfectly competitive market arises when
A) the market demand is small relative to the output of a firm. B) there are many buyers but few sellers. C) the market demand is very large relative to the output of one seller. D) a firm has control over a unique resource. E) each of the many firms produces a slightly different product.
Refer to the above figure. If the government set a price floor of $3.50 per gallon, there would be
A) an excess quantity demanded equal to 100,000 gallons. B) an excess quantity supplied equal to the distance BD. C) an excess quantity supplied equal to the distance BF. D) an excess quantity supplied equal to 100,000 gallons.
Which of the following can be a solution to the lemons problem?
a. Providing testimonials from previous buyers. b. Providing accessories to be used in the car. c. Providing discount on the purchase of a car. d. Providing a warranty that covers the costs of certain repairs.
Officially, the payroll tax is referred to as
A. the trust fund tax. B. Social Security tax. C. contributions for social insurance. D. investment in Social Security.