Collusion in oligopoly is difficult to achieve because:
A. it is prohibited by law and every firm has an incentive to cheat given that others follow the agreement.
B. it is prohibited by law.
C. every firm has an incentive to cheat given that others follow the agreement.
D. firms usually take care of consumers' interests as a decision priority.
Answer: A
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Governments in market economies usually have significant control over
a. investment spending. b. personal consumption spending. c. import spending. d. education spending.
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. What is the minimum average variable cost?
A. $6.50 B. $0 C. $5.50 D. $6.00 E. $7.00
Which of the following is a provision of the Federal Reserve Act or subsequent legislation that weakens the independence of the Federal Reserve?
a) The Federal Reserve's actions are subject to executive branch control. b) Members of the Federal Reserve Board serve 14-year terms. c) Members of the Federal Reserve Board cannot be reappointed. d) The Federal Reserve System is subject to Congressional oversight.
A factor that limits the amount of saving in developing countries is the fact that:
A. The banking system does not encourage saving B. There is too much foreign aid so savings is not needed C. The level of aggregate domestic output is low D. The government controls financial institutions and makes it difficult for people to save